Long-term bonds areA) riskier than short-term bonds, and so interest rates on long-term bonds are usually lower than interest rates on short-term bonds.B) riskier than short-term bonds, and so interest rates on long-term bonds are usually higher than interest rates on short-term bonds.C) less risky than short-term bonds, and so interest rates on long-term bonds are usually lower than interest rates on short-term bonds.D) less risky than short-term bonds, and so interest rates on long-term bonds are usually higher than interest rates on short-term bonds.

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Joseph Payne · Accepted Answer

Final Answer : B, Explanation :  Long-term bonds are considered riskier than short-term bonds because their longer duration makes them more susceptible to interest rate changes and other market risks. Therefore, to compensate for this increased risk, long-term bonds typically offer higher interest rates than short-term bonds.

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