Question: State whether this statement is true or false: The values of outstanding bonds change whenever the going rate of interest changes. In general, short-term interest

State whether this statement is true or false: “The values of outstanding bonds change whenever the going rate of interest changes. In general, short-term interest rates are more volatile than long-term rates, so short-term bond prices are more sensitive to interest rate changes than are long-term bond prices.” Explain your answer.

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