The value of a 15-year bond will change ____ for a given change in the required rate of return than will the value of a 5 year bond.
A) more
B) less
C) the same percentage
D) exactly the same

Question

Quizplus · Accepted Answer

A 15-year bond will have a longer duration than a 5-year bond, meaning it will be more sensitive to changes in interest rates. As a result, the value of a 15-year bond will change more for a given change in the required rate of return compared to the value of a 5-year bond.

The Value of a 15-Year Bond Will Change ____ for a Given