Corporate Investment and Financing

timer Asked: Aug 31st, 2015

Question description

Bonds vary in value based on a number of variables.  Maturity is one of these variables.  What happens to the value of bonds when interest rates increase?  Would a 20 year 5% bond change in value the same as a 5 year 5% bond?  Please explain.

(MBA Level - DOES NOT need to be a long answer)

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