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A Bond That Matures in 5 Years Has Less Interest

question 27

True/False

A bond that matures in 5 years has less interest rate risk than a bond that matures in 25 years because regardless of changes in interest rates,the bond can be redeemed for face value 20 years earlier.


Definitions:

Subject

In grammar, the part of a sentence or clause that indicates what the sentence is about or who performs the action.

Predicate

In logic and grammar, the part of a sentence or formula that expresses what is said about the subject.

Singular Proposition

A categorical proposition whose subject term designates a specific thing rather than a class.

Advertising Campaign

A series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC).

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