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Prices of longer-term bonds are more volatile than prices of short term bonds. However it is observed that Yields to Maturity of short-term bonds fluctuate
Prices of longer-term bonds are more volatile than prices of short term bonds. However it is observed that Yields to Maturity of short-term bonds fluctuate more than Yields to Maturity of long-term bonds. How do you reconcile these empirical observations? And what key term can help you explain this?
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