The Price Sensitivity of a Bond to a Given Change

question 67

True/False

The price sensitivity of a bond to a given change in interest rates is generally greater the longer the bond's remaining maturity.

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Definitions:

Larger Population

Refers to a bigger group or an entire set from which samples can be drawn for statistical analysis or study purposes.

Smaller Population

A subgroup or a section of a larger group or population, particularly one that is less in number.

Sampling Error

The difference between sample and population values.

Average Score

The arithmetic mean calculated by dividing the sum of scores by the number of scores.