Question: If general interest rates decrease dramatically, which statement is most correct? (a) Long-term bonds will increase in value more than short-term bonds. (b) Short-term bonds

If general interest rates decrease dramatically, which statement is most correct?

(a) Long-term bonds will increase in value more than short-term bonds.

(b) Short-term bonds will decrease in value more than long-term bonds.

(c) Long-term bonds will decrease in value more than short-term bonds.

(d) Short-term bonds will increase in value more than long-term bonds.

(e) Long-term and short-term bonds will change in value by the same amount.

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