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1) Prices and returns for ________ bonds are more volatile than those for ________ bonds, everything else held constant.
A) long-term; long-term
B) long-term; short-term
C) short-term; long-term
D) short-term; short-term
2) There is ________ for any bond whose time to maturity matches the holding period.
A) no interest-rate risk
B) a large interest-rate risk
C) rate-of-return risk
D) yield-to-maturity risk
3) Your favorite uncle advises you to purchase long-term bonds because their interest rate is 10%. Should you follow his advice?
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