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FILL-IN: The five prewriting techniques are 1) freewriting, 2) questioning,
3) making a ____________________, 4) clustering, and 5) preparing a scratch outline.
Interest Rate Risk
The risk of losing value in an investment due to a change in interest rates, affecting both bonds and loans.
Long-Duration Bonds
Bonds with a longer time until maturity, typically more than 10 years, making them more sensitive to changes in interest rates.
Duration Rule
A principle that estimates the sensitivity of a bond's price to changes in interest rates, calculated as the weighted average time until a bond's cash flows are received.
Yield
The income return on an investment, such as the interest or dividends received, expressed annually as a percentage of the investment's cost.
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