If market interest rates decline,

Question

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When market interest rates decline, long-term bonds will generally rise in value more than short-term bonds. This is because long-term bonds are more sensitive to changes in interest rates than short-term bonds due to their longer maturity. When interest rates fall, the fixed interest payments on long-term bonds become more valuable compared to the lower market interest rates for new bonds. Conversely, short-term bonds are less sensitive to changes in interest rates and may not see as much of an increase in value.

If Market Interest Rates Decline