The higher the risk of a security, 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 important The following graph shows the relationship between interest rates and maturity for three security classes: US Treasury securities (USTS), AA-rated corporate bonds, and BBB-rated corporate bonds. Use the selection dropdown lists to correctly associate each curve with its corresponding security dass: VIELD IN 15 A 12 B C 5 10 15 20 25 30 YEARS TO MATURITY A B lice Which type of bonds offer a higher yield? Noncallable bonds Callable bonds Answer the following question based on your understanding of interest rate risk and reinvestment nisk True or False: Assuming all else is equal, the shorter a bond's maturity, the more its pnce will change in response to a given change in interest rates. False True A B AA C BBB Which onds offer a higher yield? UST O Noncallable bonds Callable bonds 2 Answer the following question based on your und True or False: Assuming all else is equal the shor False True