Question

As the maturity of a bond increases, interest rate risk Blank______.

Multiple choice question.

decreases at an increasing rate


increases at an increasing rate


increases at a decreasing rate


remains constant

Answers

GPT-4o mini
As the maturity of a bond increases, interest rate risk **increases at an increasing rate**.

Longer maturity bonds are more sensitive to interest rate changes, leading to greater fluctuations in their prices as rates change.