Long-term bond prices are more volatile than short-term bond prices, given an equal percentage change in the interest rate.
The longer the remaining time, the greater the impact of a change in market rates of interest affecting the price.

Question

Quizplus · Accepted Answer

This is because long-term bonds have more time for their coupon payments to be affected by changes in interest rates, resulting in a higher sensitivity to interest rate fluctuations.

Long-Term Bond Prices Are More Volatile Than Short-Term Bond Prices