February 21, 2017

Homework Help: Finance

Posted by Marsha on Sunday, November 12, 2006 at 12:10pm.

Thr rate of return you would get if you bought a bond and held it to its maturity date is called the bond's yield to maturity. If interest rates in the economy rise after a bond has been issued, what will happen to the bond's price and to its YTM? Does the length of time to maturity affect the extent to which a given change in interest rates will affect the bond's price?

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