8. Pisks of investing in bonds A security with higher risk will have a higher expected return. A bona's risk level is feflected in its yleld, but understanding the different risks ifiyolyed when investing in bonds is important. The curves on the foliowing greph show the pelces of two 10% annual coupon bonds at varicus interest rates. Bused on the graph, which of the folloping statements is trie? Neither bond has amy interest rate risk foth bonds huve equel interest rate tisk. The I-vear bond has more infereat rate risk. The 10-yesn bond has more interest rate nisk. Which type of bonds difer a higher yield? Nancellable bonds Cantabie bonds. Answer the following guestion based on vour undeistanding of interest rate riak and reinvestment risk. True or False: Assaming all eise is equal, the shorter a bond's maturnty, the more its price wil change in fesponse to a given change in interest rites. ralse Trun