A Bond with Short Maturity Has Less "Interest Rate Risk

question 22

True/False

A bond with short maturity has less "interest rate risk" than a bond with long maturity when all other features-coupon interest rate, par value, and interest payment frequency-are the same.

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Definitions:

Pteridophyta

A division of non-flowering plants that includes ferns, horsetails, and whisk ferns, characterized by vascular tissue and the absence of seeds.

Gnetophyta

A division of gymnosperms comprising woody plants with some angiosperm-like features, including the genera Ephedra, Gnetum, and Welwitschia.

Gametophyte

The haploid phase in the life cycle of plants and algae that produces gametes for sexual reproduction.

Pollen Grain

The immature male gametophyte of seed plants (gymnosperms and angiosperms) that produces sperm capable of fertilization.