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Q1 What Is True Regarding Longterm And Shortterm Bonds (Assume They Have The Same Par Value And Coupon

Question

D. Short-term bonds have higher interest rate risk.

Q2.

There is an inverse relationship between bonds’ quality ratings and their required rates of return. Thus, the required return is lowest for AAA-rated bonds, and required returns decrease as the bond ratings get higher.

True or False

Finance