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Why Are Long-Term Bonds More Sensitive to Changes in Interest

question 10

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Why are long-term bonds more sensitive to changes in interest rates than short-term bonds?


Definitions:

Collusion

A secret or illegal cooperation between parties, typically to cheat or deceive others, often seen in contexts like business practices or trade.

Market Share

The percentage of total sales volume in a market captured by a brand, product, or company.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry, calculated by squaring the market share of each firm within the industry.

Oligopoly

A market structure characterized by a small number of firms dominating the market, where each has significant control over prices and supply.

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