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For a given change in prevailing interest rates, which security will change more in value, a T-bill or a 30 year government bond? Why?

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This solution is comprised of a detailed explanation to answer which security will change more in value, a T-bill or a 30 year government bond? Why?

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For this we have to understand the concept of duration. The term duration has a special meaning in the context of bonds. It is a measurement of how long, in years, it takes for the price of a bond to be repaid by its ...

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