It is possible that a bond with a shorter maturity than another bond may actually have a longer duration and be more sensitive to interest rate changes.

Name: It is possible that a bond with a shorter maturity than another bond may actually have a longer duration and be more sensitive to interest rate changes.
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Question

Quizplus · Accepted Answer

The bond with the shorter maturity (8% coupon rate for 20 years) has a higher duration than the bond with the greater maturity (12% for 25 years) and thus is the most price-sensitive.

It Is Possible That a Bond with a Shorter Maturity