对于B选项来说

问题如下：

Due to rising interest rates and the impact on the returns of fixed income in Country C, which of the following statements is most likely correct?

选项：

A.For horizons longer than the duration, the reinvestment impact will tend to dominate, so rising rates imply lower return. B.Over horizons shorter than the duration, the capital gain/loss impact will generally dominate, so rising rates indicate lower return. C.Over horizons shorter than the duration, the effect of any capital gain/loss impact dominates, so rising rates generally imply higher return.

解释：

Over horizons shorter than the duration, the capital gain/loss impact will tend to dominate, so rising (declining) rates imply lower (higher) return. This also explains why Answer Choice (C) is incorrect. As for Answer Choice (A), over horizons longer than the duration, the reinvestment impact will tend to dominate, so rising (declining) rates imply higher (lower) return.