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

question 142

True/False

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

---

Definitions:

Person

An individual human being, also can refer to a legal entity such as a corporation recognized by law as having rights and duties.

Shareholders' Assumption

A concept or situation where shareholders assume certain rights, risks, or responsibilities related to their investment in a corporation.

Personal Liability

The responsibility of an individual to settle debts or obligations from personal assets, as opposed to business liabilities.

Guarantors

Individuals or entities that agree to be responsible for another's debt or performance under a contract if the original party fails to meet its obligations.