How Is the Risk Involved in Purchasing Bonds Affected by the Bond's

Multiple Choice

How is the risk involved in purchasing bonds affected by the bond's maturity date?

A) The sooner the maturity date, the greater the rate of return is on the bond.
B) The further the maturity date, the less likely a bondholders' claim will be filed.
C) The sooner the maturity date, the lower the initial offering price of the bond.
D) The further the maturity date, the greater the chance for unforeseen circumstances that affect the bond.
E) The sooner the maturity date, the greater the chance for significant market changes that affect the bond.