Longer the Maturity of a Treasury Security, the Smaller the Interest

question 47

True/False

Longer the maturity of a Treasury security, the smaller the interest rate risk.

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Definitions:

Proportional

Relating to or denoting a relationship between two quantities where their ratio remains constant.

Perceived Market Share

The percentage of an industry or market's total sales that is believed to be controlled by a company, as perceived by individuals or entities.

Actual Market Share

The current portion of a market controlled by a particular company, measured by either to the volume or value of its sales.

Perfect Complements

Goods that are consumed together in fixed proportions because the consumption of one good enhances the value of the other.