Question: Which statement is TRUE regarding market risk for bondholders? A To protect against market risk, investors should only buy high quality issues B As interest
Which statement is TRUE regarding market risk for bondholders?
A To protect against market risk, investors should only buy high quality issues
B As interest rates rise, the price of short term bonds falls faster than that of long term bonds
To protect against market risk, a customer would invest in bonds with long term maturities
To protect against market risk, a customer would invest in bonds with short term maturities
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