B. Risks of investing in bonds The higher the risk of a secunty, the higher its expected return will be. A bond's risk level is reflected in its yield, but understanding the different risks involved when investing in bonds is importank. The following graph shows the relationship between interest rates and maturtiv for three securty classes: us Treasury securities (USTS), M-rated corporate bonds, ane B88-tated corponte bonds. Use the selection dropdown tsts to correctly associate each curve with its corresponding secunty class: A B C Fank Aurione is retiring soon, wo hes concemed about his investiments providing Nim wath a steady income every yeac thes aware that if interes rates the potentiat eornings power of the cast fiow trom Nis investrients will increase. in partculat, he is concemed that a decine in intecest rates might lead to arnoust tocome from his irvestments. What kind of risk is Frank most conctrned about protecting against? Imerest rate nax Revivestment risk Answer the following queston based on your understanding of interest rate rak and reinvestment rikk. True or Faise: Assuming all else is equal, fong-term securties are exposed to higher interest rate risk than shortterm securities. True False