Bond That Had a 20-Year Original Maturity with 1 Year

question 35

True/False

bond that had a 20-year original maturity with 1 year left to maturity has more interest rate price risk than a 10-year original maturity bond with 1 year left to maturity(Assume that the bonds have equal default risk and equal coupon rates, and they cannot be called.)

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Definitions:

Anti-Federalists

Opponents of the ratification of the U.S. Constitution in 1787-1788, who favored stronger state governments and feared a too powerful federal government.

Proclamation of 1763

Royal directive issued after the French and Indian War prohibiting settlement, surveys, and land grants west of the Appalachian Mountains; caused considerable resentment among colonists hoping to move west.

Articles of Confederation

The original constitution of the United States, ratified in 1781, which was eventually replaced by the U.S. Constitution in 1789 due to its weakness in central governance.

National Government

A political organization holding sovereign authority over a country, responsible for its administration and law enforcement.