For a given change in interest rates, fixed-rate assets with long-term maturities will have smaller changes in price than assets with shorter maturities.

Question

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Fixed-rate assets with long-term maturities are more sensitive to changes in interest rates and will have larger changes in price than assets with shorter maturities. This is because the present value of their cash flows is affected more significantly by changes in the discount rate (interest rate).

For a Given Change in Interest Rates, Fixed-Rate Assets with Long-Term