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Assume that two bonds both have 7 % coupons . The first bond matures in 7 years and the second matures in 20 years .

Assume that two bonds both have 7 % coupons . The first bond matures in 7 years and the second matures in 20 years . The price of the 20 - year bond will be more sensitive to changes in interest rates than the price of the 7 - year bond . True False

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