Question

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.

Answer 1

[AI-generated answer — Bot GPT 3.5]

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.