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If you are holding two identical bonds, except that one matures in 1 0 years and the other matures in 5 years, which bond's price
If you are holding two identical bonds, except that one matures in years and the other matures in years, which bond's price will be more sensitive to interest rate risk?
Multiple choice question.
The year bond.
Both bonds are equally sensitive
The year bond.
Time to maturity does not affect interest rate risk.
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