Bond Price Volatility Varies Directly with the Term to Maturity

question 37

True/False

Bond price volatility varies directly with the term to maturity and directly with the coupon.

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Definitions:

DAX 30 Index

A stock market index that represents 30 of the largest and most liquid German companies trading on the Frankfurt Stock Exchange.

CAC 40 Index

A benchmark French stock market index that represents the 40 largest equities listed in France, measuring their performance.

Toronto 35 Index

An index that was once used to represent the performance of the 35 most significant stocks listed on the Toronto Stock Exchange.

Basis

In finance, refers to the difference between the spot price of an asset and its future price, or to the initial value used for tax purposes.