The Smaller the Duration, the More Volatile the Bond's Price

question 31

True/False

The smaller the duration, the more volatile the bond's price.

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Definitions:

Positive Illusion

A cognitive bias that causes an individual to view themselves, their situation, or the future more favorably than reality may justify.

Unfounded Attitude

An opinion or perspective that is not based on evidence or experience.

Class

A group of students who are taught together in school or a categorization based on shared characteristics or attributes.

Cognitive Dissonance

The mental discomfort or psychological stress experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.