1. Is the price of a long-term bond more or less sensitive to a change in interest rates than the price of a short-term security? If so, why? 2. Consult the financial press in today’s paper and record...

1. Is the price of a long-term bond more or less sensitive to a change in interest rates than the price of a short-term security? If so, why?

2. Consult the financial press in today’s paper and record the 13-week and 26-week Treasury bill yields and prices. See if you can make some money by “riding the yield curve”.