Compared to short-term bonds,other things the same,long-term bonds generally have
A)more risk and so they pay higher interest rates.
B)less risk and so they pay lower interest rates.
C)less risk and so they pay higher interest rates.
D)about the same risk and so they pay about the same interest rate.

Question

Quizplus · Accepted Answer

Long-term bonds have more risk because they have a longer period of time before maturity, during which inflation and interest rate changes can affect their value. As a result, to compensate for this added risk, they typically offer higher interest rates than short-term bonds.

Compared to Short-Term Bonds,other Things the Same,long-Term Bonds Generally Have