Prices for Long-Term Bonds Are More Volatile Than for Shorter-Term

question 83

True/False

Prices for long-term bonds are more volatile than for shorter-term bonds.

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Definitions:

Economist

A professional or expert in economics, studying the production, distribution, and consumption of goods and services.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Price-taker Market

A market situation where buyers and sellers accept the prevailing market price as they individually have no influence over it.

Short-run Market Supply

The total quantity of a good that producers are willing and able to sell at a given price over a short period.