Which one of the following statements is false?
The three major credit rating agencies in SA are Standard & Poor, Fitch and Moody’s.
Speculative-grade debt is also known as junk status.
Treasury bonds mature in more than 10 years.
Longer-dated bonds have a higher interest rate than the shorter-dated bonds.
The relationship between interest rates and bond prices is negative.
1 answer
The statement "Longer-dated bonds have a higher interest rate than the shorter-dated bonds" is false. In general, longer-dated bonds have lower interest rates than shorter-dated bonds. This is known as the yield curve, which typically slopes upwards, indicating higher interest rates for shorter maturities.
1 answer