Increasing the Time to Maturity and Decreasing the Coupon Rate

question 144

True/False

Increasing the time to maturity and decreasing the coupon rate will increase the interest rate risk of a bond.

---

Definitions:

Preindustrial Age

A period before the widespread use of machines and the advent of industrial production processes, characterized by agrarian societies and handmade goods.

Written Constitution

A formal document outlining the structure, functions, and powers of a government and the rights of the citizens, serving as the supreme law of the land.

Membership Dues

Membership dues refer to the fees individuals or entities pay regularly to belong to an organization, club, or group, providing them access to membership benefits and privileges.

U.S. Third Party

Political parties in the United States that operate outside of the traditionally dominant Democratic and Republican parties, often advocating specific or alternative policies.