Which of the following statements is correct?
A) Bonds with short-term maturities will have very little interest rate risk.
B) Bonds with lower coupon payments will have very little interest rate risk.
C) Bonds with higher credit ratings will have very little interest rate risk.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

Bonds with short-term maturities are less sensitive to changes in interest rates, thus having very little interest rate risk compared to long-term bonds.

Which of the Following Statements Is Correct