Math
posted by Casey .
The values of outstanding bonds change whenever the going rate of interest changes. In
general, shortterm interest rates are more volatile than longterm interest rates. Therefore,
shortterm bond prices are more sensitive to interest rate changes than are longterm bond
prices. Is that statement true or false? Explain. (Hint: Make up a “reasonable” example
based on a 1year and a 20year bond to help answer the question.)
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