Answers 26-27 Ignite Financial Literacy Personal Finance - EL3403 Buying BondsQuestion 3

3

QuizMultiple Choice

Buying Bonds

Question 3 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

What are the benefits of a long-term bond over a short-term bond?

Answer

A

Long-term bonds have fewer risks than short-term bonds.

B

Long-term bonds have more risks associated with them, and bring in lower returns for the initial investment.

C

While long-term bonds have more risks associated with them, they have the potential to bring in higher returns for the initial investment.

D

Long-term bonds always have a higher return for the investment.

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