(I)Prices of Longer-Maturity Bonds Respond Less Dramatically to Changes in Interest

Multiple Choice

(I) Prices of longer-maturity bonds respond less dramatically to changes in interest rates. (II) Prices and returns for long-term bonds are less volatile than those for shorter-term bonds.

A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.