The prices of outstanding bonds change whenever the going, Ask an Expert

Economics

"The values of outstanding bonds change whenever the going rate of interest changes. In general, short-term interest rages are more volatile than long-term interest 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? Please explain based on a 1 year and a 20 year bond.
Can you help me with this one please.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9293703

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