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:

Net Income

The amount of profit that remains after all operating expenses, taxes, and interest have been deducted from total revenue.

Random Variable

A variable that can take on different values randomly, subject to a certain probability distribution.

Net Income

The amount of money a company earns after deducting all its expenses, taxes, and costs from its total revenue.

Random Variable

A numerical variable influenced by the outcomes of a random phenomenon.