Short-term bonds are generally
A)less risky than long-term bonds and so they feature higher interest rates.
B)less risky than long-term bonds and so they feature lower interest rates.
C)more risky than long-term bonds and so they feature higher interest rates.
D)more risky than long-term bonds and so they feature lower interest rates.

Question

Quizplus · Accepted Answer

Short-term bonds are generally less risky than long-term bonds because they have a shorter time to maturity and are less susceptible to changes in interest rates. As a result, they feature lower interest rates.

Short-Term Bonds Are Generally