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(Solved): A financial adviser has just given you the following advice: "Long-term bonds are a great investm ...



A financial adviser has just given you the following? advice: "Long-term bonds are a great investment because their interest rate is over? 20%." Is the financial adviser necessarily? right? A. No. When making an investment? decision, you should take the yield to maturity into? account, not the interest rate. B. No. If interest rates rise sharply in the? future, long-term bonds may suffer a sharp fall in? price, causing their return to be quite low. C. Yes. If the interest rate remains unchanged until? maturity, the price of the bond will be more than its face value. D. Yes. The higher the annual interest? rate, the higher the annual income on bonds.



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