bond values change through time. Teach the concept
taking care to explain the implication(s) this pattern has for interest rate risk – highlight
the interest rate implication(s) at the end of your answer.
Tags: bonds finance Interest Rate Risk
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Explanation & Answer
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Unlike stocks, bond value fluctuates with changing economic environments and changing
market sentiments. Various factors such as yield and prevailing interest rates affect bond value.
Another factor that influences bond value is the term of the bond. Oft...
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