The Prices of Twenty-Year Bonds Tend to Fluctuate Less Than

question 64

True/False

The prices of twenty-year bonds tend to fluctuate less than bonds with five years to maturity.

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Definitions:

Assignment Effective

The point in time when a contractual assignment of rights or interests from one party to another becomes valid and enforceable.

Obligor

A person or entity legally obligated to provide a payment or service to another under the terms of a contract.

English Rule

A legal principle requiring the losing party in a lawsuit to pay the winner's attorney fees and court costs.

First-Assignment-In-Time Rule

A legal principle that prioritizes the rights of the party that first received a property transfer or assignment over those of subsequent recipients.