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Comparing Long-Term Bonds with Short-Term Bonds, Long-Term Bonds Are _____

Question 4

Multiple Choice

Comparing long-term bonds with short-term bonds, long-term bonds are _____ volatile and therefore experience _____ price change compared with short-term bonds for the same interest rate shift.


A) less; less
B) less; more
C) more; more
D) more; less
E) more; the same

Correct Answer:

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