Long-Term Bond Prices Are More Volatile Than Short-Term Bond Prices

question 131

True/False

Long-term bond prices are more volatile than short-term bond prices, given an equal percentage change in the interest rate.
The longer the remaining time, the greater the impact of a change in market rates of interest affecting the price.

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Definitions:

Regio-

A prefix in chemistry that describes the position or orientation of functional groups in a molecule relative to each other.

Stereochemical Detail

Information regarding the three-dimensional arrangement of atoms within a molecule and how this arrangement affects chemical behavior and reactivity.

Regio-

A prefix in chemistry indicating the region or position in a molecule where a reaction takes place, often used in context with selectivity.

Stereochemical Detail

Information regarding the three-dimensional arrangement of atoms or groups within molecules, which can influence physical and chemical properties.