A Bond That Had a 20-Year Original Maturity with 1

question 34

True/False

A bond that had a 20-year original maturity with 1 year left to maturity has more interest rate price risk than a 10-year original maturity bond with 1 year left to maturity.(Assume that the bonds have equal default risk and equal coupon rates, and they cannot be called.)

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Definitions:

Vitamins

Organic compounds required in small quantities for essential metabolic reactions in the body.

Eukaryotic

Pertains to cells or organisms that have a nucleus enclosed within membranes, distinguishing them from prokaryotic cells which do not.

Microorganisms

Tiny, often microscopic, life forms, including bacteria, viruses, fungi, and some algae and protozoa, that can be found in virtually all environments.

Protozoans

Single-celled eukaryotic organisms, often parasitic or free-living in water or moist environments, capable of movement and feeding on organic substances.