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The value of outstanding bonds change whenever the going rate of interest changes. In general, short-term rates are more volatile than long-term rates. Therefore, short-term

The value of outstanding bonds change whenever the going rate of interest changes. In general, short-term rates are more volatile than long-term rates. Therefore, short-term bond prices are more sensitive to interest rate changes than are long-term bond prices. Is this statement true or false? Make up a reasonable example using a short-term and a long-term bond to help answer the question.

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