Answered

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The reason that interest rate risk is greater for ____ term bonds than for ____ term bonds is that the change in rates has a greater effect on the present value of the ____ than on the present value of the ___

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azikennamdi

The reason that interest rate risk is greater for long-term bonds than for short-term bonds is that the change in rates has a greater effect on the present value of the Par Value than on the present value of the Coupon.

What is a Long-term Bond?

Long-term bonds are investments that span a maturity term of at least 10 years and up to 30 years.

They usually pay a higher interest rate than the short-term bonds which span between a year and three years.

See the link below for more about long-term bonds:

https://brainly.com/question/3521722

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