A Bond That Had a 20-Year Original Maturity with 1

question 34

True/False

A bond that had a 20-year original maturity with 1 year left to maturity has more interest rate price risk than a 10-year original maturity bond with 1 year left to maturity.(Assume that the bonds have equal default risk and equal coupon rates, and they cannot be called.)

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Definitions:

Superego

Part of Sigmund Freud's psychoanalytic theory, representing the ethical component of the personality and providing the moral standards by which the ego operates.

Moral Component

This refers to the aspects of decision-making that involve ethics, values, and principles of right and wrong.

Mediating Agent

An entity or factor that intervenes or facilitates a process or interaction between other entities or phenomena.

Biological Impulses

Innate and instinctual drives that determine behavior, such as hunger, thirst, and the need for sleep.