8-28 For a given change in interest rates,fixed-rate liabilities with longer-term maturities will have smaller changes in price than liabilities with shorter maturities.

Name: 8-28 For a given change in interest rates,fixed-rate liabilities with longer-term maturities will have smaller changes in price than liabilities with shorter maturities.
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Question

Quizplus · Accepted Answer

Longer-term fixed-rate liabilities are more sensitive to interest rate changes, resulting in larger price changes compared to shorter-term liabilities.

8-28 for a Given Change in Interest Rates,fixed-Rate Liabilities with Longer-Term