Bond value changes through time

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arrqsvanapruryc93

Economics

Description

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.

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Explanation & Answer

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1

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...


Anonymous
Excellent! Definitely coming back for more study materials.

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