Question
If interest rates rise, which statement about bond prices is true? A) Corporate bonds of all maturities will increase in price. B) U.S. government
If interest rates rise, which statement about bond prices is true? A) Corporate bonds of all maturities will increase in price. B) U.S. government Treasury bonds' prices will not change because they are risk-free. C) Shorter term government bonds will increase in price. D) Shorter term corporate bonds' prices will decrease more than longer term corporate bonds. E) Longer term bonds' prices will decrease more than shorter term bonds.
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Exploring Economics
Authors: Robert L Sexton
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