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Why Are Longer-Term Bonds More Sensitive to Changes in Interest

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Why are longer-term bonds more sensitive to changes in interest rates than shorter-term bonds?


Definitions:

Psychological Contract

An unwritten agreement that sets out mutual expectations, rights, and duties between parties, typically between an employer and employee.

Person-Environment Fit

The degree to which individual and environmental characteristics match.

Enterprising

Showing initiative and willingness to undertake new projects.

Human Factors Psychology

The study of how people interact with products, systems, and environments in order to improve technology, safety, and usability.

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