Click to watch the Concept Clip Investor Bond Price Risk video and then answer the questions below.

What happens to the prices of bonds as the market rate of interest increases?

a$.$ Doubles

b$.$ Decreases

c$.$ Increases

d$.$ Stays the same

Why do long$-$term bonds typically have higher coupon rates shorter$-$term bonds?

a$.$ They have a higher rate of return.

b$.$ They are a lower tax risk.

c$.$ More investors want to buy them.

d$.$ They are riskier investments.