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Which of the Following Are Generally True of All Bonds

Question 73

Multiple Choice

Which of the following are generally true of all bonds?


A) The longer a bond's maturity, the lower is the rate of return that occurs as a result of the increase in the interest rate.
B) Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise.
C) Prices and returns for long-term bonds are more volatile than those for shorter-term bonds.
D) All of the above are true.
E) Only A and B of the above are true.

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