or this week's assignment, you will research and answer the following questions.

• Short-term interest rates are more volatile than long-term interest rates, so short-term bond prices are more sensitive to interest rate changes than long-term bond prices. Is this statement true or false? Explain.
• A bond that pays interest forever and has no maturity date is perpetual, also called perpetuity. In that respect, is a perpetual bond similar to
  • a no-growth common stock; or
  • a share of preferred stock?