Which of the following is/are correct regarding a bond’s interest rate and term to maturity?(1) The lower a bond’s interest rate, the lower its relative price fluctuation.(2) The longer a bond’s term to maturity, the greater its relative price fluctuation.

🎲 Try a Random Question  |  Total Questions in Quiz: 160  |  🧠 Study this quiz with Flashcards
This question is part of a full practice quiz:
CFP Certification Exam: Practice Questions 2 — practice the complete quiz, review flashcards, or try a random question.

The CFP® certification exam is a 6-hour, 170-question, multiple-choice test in the US assessing financial planning proficiency. It includes standalone questions, scenarios, and case studies, focusing on application over recall. Key areas include tax, retirement, estate, and investment planning, designed to test critical thinking and practical application.  Key Aspects of the CFP® Exam Structure: The exam is broken into two 3-hour sessions with a 40-minute break. Content: Questions cover 8 main domains: Financial Planning Process, Risk Management/Insurance, Investment Planning, Tax... Show more

Which of the following is/are correct regarding a bond’s interest rate and term to maturity?<br>(1) The lower a bond’s interest rate, the lower its relative price fluctuation.<br>(2) The longer a bond’s term to maturity, the greater its relative price fluctuation.