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

question 124

Essay

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

---

Definitions:

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

Galactose

A simple sugar (monosaccharide) that, along with glucose, makes up lactose, the primary sugar in milk.

Five-Membered Ring

A ring structure consisting of five atoms, common in various organic compounds and crucial in the study of organic chemistry.

Fructose

A simple sugar found in honey and fruit, sweeter than glucose and used in the food industry.