The Larger the Numerical Value of the Duration of an Asset

question 48

True/False

The larger the numerical value of the duration of an asset or liability, the less sensitive the price of that asset or liability is to changes in the interest rate.

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Definitions:

Impatience

A lack of patience or an eagerness to act or get results quickly, often without waiting for the natural course of events.

Attractive Harvest

A term in venture capital and entrepreneurship referring to a situation where the returns from an investment are significantly high and appealing.

Greed

An excessive desire for wealth or possessions, often disregarding ethical standards.

Stock-For-Stock Exchange

A method in corporate acquisitions where the acquiring company uses its own stock as currency to purchase the target company's shares.