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Business, 26.07.2019 00:20 deedee363

Afinancial 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. yes. if the interest rate remains unchanged until maturity, the price of the bond will be more than its face value. b. yes. the higher the annual interest rate, the higher the annual income on bonds. c. 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. d. no. when making an investment decision, you should take the yield to maturity into account, not the interest rate.

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