The correct answer is A. more price change.
A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). The borrower issues bonds to raise money and agrees to pay the bond holders a fixed interest rate for a specified period of time, known as the maturity date.
The price of a bond is determined by a number of factors, including the interest rate, the maturity date, and the creditworthiness of the issuer. In general, the longer the maturity date, the more price change a bond will experience. This is because longer-term bonds are more sensitive to changes in interest rates. When interest rates go up, the price of long-term bonds goes down, and vice versa.
Here is a brief explanation of each option:
- Option A: more price change. As explained above, longer-term bonds are more sensitive to changes in interest rates. This means that the price of long-term bonds is more likely to change than the price of short-term bonds.
- Option B: stable prices. This is not the correct answer because longer-term bonds are more sensitive to changes in interest rates, and their prices are therefore more likely to change.
- Option C: standing prices. This is not the correct answer because the prices of bonds are constantly changing, and there is no such thing as a “standing price” for a bond.
- Option D: mature prices. This is not the correct answer because the price of a bond is not determined by its maturity date. The price of a bond is determined by a number of factors, including the interest rate, the maturity date, and the creditworthiness of the issuer.