Which of the following statements regarding a bond\'s time to maturity is true?

ID: 2825130 • Letter: W

Question

Which of the following statements regarding a bond's time to maturity is true?

Question 17 options:

United States Treasury Bonds have maturities between six to twelve years.

A bond with a shorter maturity generally has a higher price than one with a longer maturity.

The fair price of a "straight bond" is the sum of its discounted expected cash flows.

All of these answers.

United States Treasury Bonds have maturities between six to twelve years.

A bond with a shorter maturity generally has a higher price than one with a longer maturity.

The fair price of a "straight bond" is the sum of its discounted expected cash flows.

All of these answers.

A bond with a shorter maturity generally has a higher price than one with a longer maturity.

A longer term bond increases the risk to the bondholder which decreases the price of the bond.

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