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

question 10

Essay

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


Definitions:

Merchants Bancorp

An American banking company involved in providing banking and financial services.

Holder In Due Course

A person who acquires a negotiable instrument in good faith and for value, thus having certain protections against defenses and claims.

Assignee

The party to whom rights or property are transferred in an agreement.

Transferor

An individual or entity that transfers its rights or properties to another.

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