There Is a Natural Tendency for the Yield on Long-Term

Multiple Choice

There is a natural tendency for the yield on long-term bonds to be greater than on short-term bonds because:

A) holders of long-term bonds benefit most from a fall in interest rates.
B) reinvestment risk is more pronounced for long-term bonds than short-term bonds.
C) long-term bonds are more price-sensitive than short-term bonds.
D) the risk of default is greater for long-term bonds.