8. Risks of investing in bonds Aa Aa A security with higher risk will have a higher expected return. A bond's risk level is reflected in its yield, but understanding the different risks involved when investing in bonds is important. The curves on the following graph show the prices of two 10% annual coupon bonds at various interest rates. BOND VALUE IS 2000 1750 500 250 1000 750 500 250 1-Year Bond 10-Year Bond 12 16 20 INTEREST RATE 1%] Based on the graph, which of the following statements is true