Question

The price sensitivity of a bond to a given change in interest rates is generally lower the longer the bond's remaining maturity because short term rates are more volatile than long term rates.

Answer 1

This statement is false.

The Price sensitivity of a bond with respect to interest rate is called maturity and is generally lower with lower maturity bonds. Duration can be thought of as a weighted avarage of time at which the bond holder receive the payment. So duration increases with the maturity of a bond and i like a payback period.

I hope this makes sense

Feel free to ask anything in comments

Also press the like button

Took a lot of efforts

Thanks & Regards