Bond Price Volatility Varies Directly with the Term to Maturity

question 37

True/False

Bond price volatility varies directly with the term to maturity and directly with the coupon.

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Definitions:

Investment Strategy

An investor's plan of distributing assets among various investments aimed at achieving a specific financial goal.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.

Equity

The value of an owner's interest in a property or business, after all debts associated with that property or business are paid off.

EBIT

EBIT, which stands for Earnings Before Interest and Taxes, calculates a company's earnings without considering income tax and interest expenses.