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Doctors Medicines MCQs Q&A

  1. long-term bonds
  2. short-term bonds
  3. internal term bonds
  4. external term bonds
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1 Answers

Answer: Option 1

In capital budgeting, term of bond which has great sensitivity to interest rates is long-term bonds. Bond with a maturity period of more than 15 years. Long bonds pay higher interest rates but have greater credit and inflation risk. Also called long bond

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