The volatility of bond price is inversely related to term to maturity.

• A. True
• B. False

A portfolio of bonds is immunized from interest rate risk if the duration of the portfolio is always equal to the desired investment horizon.

• A. True
• B. False

The duration of a 20-year zero-coupon bond is equal to the maturity, regardless of the market rate.

• A. True
• B. False