An investor might expect to receive the greatest gain on an investment in a corporate bond by purchasing:

An investor might expect to receive the greatest gain on an investment in a corporate bond by purchasing:


A) long-term bonds when interest rates are high.

B) long-term bonds when interest rates are low.

C) short-term bonds when interest rates are high.

D) short-term bonds when interest rates are low.



Answer: B) long-term bonds when interest rates are high.


Learn More :