Which
of the following statements about bonds is true?

Question

Answer

Long-term
bonds are less risky than short-term bonds.

Answer

If
market interest rates change, the price of long-term bonds will fluctuate more
in value than short-term bonds when other factors remain the same.

Answer

If market interest rates are higher than a bond's coupon interest rate, then the bond will sell above its par value.

Answer

Bond
prices move in the same direction as market interest rates.

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