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:

Light Touch

is a sensory perception triggered by a stimulus that lightly contacts the skin, allowing for the detection of texture, pressure, and vibration.

Pacinian Corpuscles

Pressure sensors in the skin and viscera, detecting mechanical changes and vibrations.

Mechanoreceptors

Sensory receptors that respond to mechanical pressure or distortion, involved in sensations such as touch and sound.

Hair Follicle Receptors

Sensory nerve fibers that surround each hair follicle and are sensitive to the movement of the hair, providing tactile feedback.