Question: (CHAPTER 7) For each of the four statements below, select if they are TRUE or FALSE. (HINT: Two are true and two are false!) 10-year

(CHAPTER 7) For each of the four statements below, select if

(CHAPTER 7) For each of the four statements below, select if they are TRUE or FALSE. (HINT: Two are true and two are false!) 10-year bonds have a higher interest rate risk than 8-year bonds because when bonds interest rates increase, the 10-year bonds decrease in value by a lot more. [Select ] The fair price for a bond decreases when its yield to maturity decreases. [Select] The lower the coupon rate or the longer the time to maturity, the less the bond price will fluctuate when its yield to maturity changes. [Select ] . "Risk" in "interest rate risk" refers to not knowing what the bond's future value will be. (Select]

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