10-year bond
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The values of outstanding bonds change whenever the going rate of interest changes. In general, short-term interest rates are more volatile than long-term interest rates. Therefore, short-term bond prices are more sensitive to interest rate changes than are long-term bond prices. Is that statement true or false? Explain. (Hint: Make up a "reasonable" example based on a 1-year and 20-year bond to help answer the question.)
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10-year bonds are studied.
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This statement is false. The opposite is true. Because short-term bonds are available for a shorter period of time so the interest rate will not going to change much.
In 1 year bonds will exist under the same interest rate ...
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