Question: Explanation are needed Thank you!~ 7. [ True / False ] Consider a semi-annual floating rate bond and a semi-annual fixed coupon rate bond with

Explanation are needed

Thank you!~

7. [ True / False ] Consider a semi-annual floating rate bond and a semi-annual fixed coupon rate bond with 5 year maturity. In general, the price of the former is less sensitive to the changes in the interest rates because cash flows from the former reflect the changes in the interest rates.

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