The Longer the Time to Maturity,the Lower the Security's Price

question 40

True/False

The longer the time to maturity,the lower the security's price sensitivity to an interest rate change,ceteris paribus.

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Definitions:

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for, including both operating activities and investments.

Financing Activities

Transactions related to a company's raising or repaying capital, such as issuing shares, paying dividends, or taking on new loans.

Cash Dividends

Money distributed by a corporation to its shareowners, frequently as a dividend from profits.

Operating Activities

Transactions and other events that are not investing or financing activities, usually involving the production and delivery of goods and services.