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< Back to Assignment pts: 8. Risks of investing in bonds Security With higher risk Will have higher bond'S risk iS reflected in its yield, but understanding the different risks involved When investing in iS important _ The on the following graph Show the priC9S Of annual coupon bonds at various interest BONO 1 Bond INTEREST RATE Based on the graph, which of the following statements is true? o The I-year bond has more interest rate risk. (D Neither bond has any interest rate risk. C) The to-year bond has more interest rate risk. C) doth bonds have equal interest rate risk. Which type af bands Offer a higher yield? C) Noncallable bonds CD Callable bonds Answer the following question based on your understanding of interest ratg risk and reinvestment risk. Trug or False: Assuming all else is equal, long-term securities arg exposed to higher interest rate risk than short-term securitigs_ C) True C) False