Question
Which of the following best describes maturity risk? a: If interest rates increase, bonds with long maturities will increase in price, but bonds with short
Which of the following best describes maturity risk?
a: | If interest rates increase, bonds with long maturities will increase in price, but bonds with short maturities will decrease in price. | |
b: | If interest rates increase, bonds with short maturities will increase in price, but bonds with long maturities will decrease in price. | |
c: | If interest rates increase, bonds with long maturities will decrease in price more than bonds with short maturities. | |
d: | If interest rates increase, bonds with short maturities will decrease in price more than bonds with long maturities. | |
e: | If interest rates increase, bonds with long maturities will increase in price more than bonds with short maturities. |
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