For a Given Change in Interest Rates, the Change in Price

question 13

True/False

For a given change in interest rates, the change in price for each additional year of maturity of a fixed-rate asset is smaller as the maturity increases.

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Definitions:

Nominal Scale

A measurement scale used in research that categorizes data without natural order or ranking.

Pie Graph

A circular chart divided into sectors, each representing a proportion of the whole.

Ordinal Scale

A ranking scale in which data can be ordered but the intervals between values are not known or are not meaningful.

Frequency Distribution

The representation, either in a graph or table form, of how often each value occurs in a set of data.