There is a natural tendency for the yield on long-term bonds to be greater than on short-term bonds because

Select one:

a.

holders of long-term bonds benefit most from a fall in interest rates

b.

reinvestment risk is more pronounced for long-term bonds than short-term bonds

c.

long-term bonds are more price-sensitive than short-term bonds

d.

the risk of default is greater for long-term bonds