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

question 34

True/False

A 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:

Punishment

The imposition of a penalty or negative consequence following undesirable behavior, aimed at reducing or eliminating that behavior.

Punishment Contrast

A phenomenon whereby a behavior that is suppressed through punishment in one situation increases in another situation in which punishment was not administered.

Suppression

A method or action taken to stop or reduce an undesired behavior or activity, often through the use of negative consequences or removal of positive reinforcement.

Head-banging

A repetitive and rhythmic self-harming behavior often observed in cases of developmental disorders, stress, or frustration.