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:

Cultural Context

The pattern of physical cues, environmental stimuli, and implicit understanding that convey meaning between two members of the same culture.

Physical Cues

Non-verbal signals or body language that convey feelings, intentions, or information without the use of words.

Implicit Understanding

An understanding that is not directly expressed but is assumed or inferred from actions, words, or context.

Material Goods

Physical items that are produced and can be bought, sold, or traded.