In capital budgeting, term of bond which has great s... - Solved MCQs & Answer

455FinanceMedium

In capital budgeting, term of bond which has great sensitivity to interest rates is______________?

AExternal term bonds

BLong-term bonds

CShort-term bonds

DInternal term bonds

Correct answer

B. Long-term bonds

Explanation

Long-term bonds is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

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