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    Financial Management Theory and Practice Study Set 4
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    Exam 5: Bonds, Bond Valuation, and Interest Rates
  5. Question
    Because Short-Term Interest Rates Are Much More Volatile Than Long-Term
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Because Short-Term Interest Rates Are Much More Volatile Than Long-Term

Question 12

Question 12

True/False

Because short-term interest rates are much more volatile than long-term rates, you would, in the real world, generally be subject to much more interest rate price risk if you purchased a 30-day bond than if you bought a 30-year bond.

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