If interest rates are expected to increase in the near future, you are better off holding onto a long-term bond.

A.False: Long-term bonds are never a good investment when the economy is growing normally.

B.True: You'll gain more by owning long-term bonds when interest rates rise.

C.False: You should hold onto shorter term bonds that are less subject to prices falling if interest rates rise.

D.True: Short-term bonds are a very bad idea.