Question 38Long-term bonds are generallyIless risky than short-term bonds and so pay higher interest.less risky than short-term bonds and so pay lower interest.more risky than short-term bonds and so pay higher interest.more risky than short-term bonds and so pay lower interest.Question 39On which bond is default most likely?P Type here to search40i3esc(@%23LO

Long term generally refers to a period of maturity which lies between 10 years to 30 years.

Question 38 I Long-term bonds are generally A less risky than short-term bonds and so pay higher interest. B less risky than short-term bonds and so pay lower interest. C) more risky than short-term bonds and so pay higher interest. D more risky than short-term bonds and so pay lower interest.

Question 38 I Long-term bonds are generally A less risky than short-term bonds and so pay higher interest. B less risky than short-term bonds and so pay lower interest. C) more risky than short-term bonds and so pay higher interest. D more risky than short-term bonds and so pay lower interest.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter27: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3PA

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