Which of the following statements regarding interest rate se…
Which of the following statements regarding interest rate sensitivity are accurate: I) Inverse relationship between bond price and interest rates (or yields) II) Long-term bonds are more price sensitive than short-term bonds III) Sensitivity of a bond’s price to a change in yields increases at a decreasing rate as maturity increases IV) Sensitivity of a bond’s price to a change in its yield is inversely related to the yield to maturity at which the bond currently is selling. V) An increase in a bond’s yield to maturity results in a smaller price decline than the gain associated with a decrease in yield.