Longer-Term Bond Prices Are More Sensitive to Changes in Interest

question 51

True/False

Longer-term bond prices are more sensitive to changes in interest rates than are short-term bond prices.

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Definitions:

Assets

Economic resources owned by a business or individual that are expected to bring future benefits or value.

Cost Method

An accounting method used to value inventory or investments, based on the historical cost paid for the asset.

Voting Stock

Voting stock refers to shares that give the shareholder the right to vote on company matters, such as electing the board of directors.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically including bonds, notes, and bills.