8-24 For a given change in interest rates,fixed-rate assets with long-term maturities will have greater changes in price than assets with shorter maturities.

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Quizplus · Accepted Answer

This is because fixed-rate assets with longer maturities are more sensitive to changes in interest rates as there is a greater time period over which the interest rate can affect the value of the asset. Conversely, fixed-rate assets with shorter maturities have a lower sensitivity to changes in interest rates.

8-24 for a Given Change in Interest Rates,fixed-Rate Assets with Long-Term