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Other Things the Same, as the Maturity of a Bond

Question 71

Multiple Choice

Other things the same, as the maturity of a bond becomes longer, the bond will pay


A) a lower interest rate because it has less risk.
B) a lower interest rate because it has more risk.
C) a higher interest rate because it has more risk.
D) the same interest rate, because there is no relationship between term and risk.

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