Saturday
November 29, 2014

Homework Help: Math

Posted by Casey on Friday, November 13, 2009 at 10:31pm.

The values of outstanding bonds change whenever the going rate of interest changes. In
general, short-term interest rates are more volatile than long-term interest rates. Therefore,
short-term bond prices are more sensitive to interest rate changes than are long-term bond
prices. Is that statement true or false? Explain. (Hint: Make up a “reasonable” example
based on a 1-year and a 20-year bond to help answer the question.)

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - "The value of outstanding bonds change whenever the going rate of ...
business finance - value of outstanding bond changes whenever the going rate of ...
Math - The Garraty company has two bond issues outstanding. Both bonds pa $100 ...
bond valuation - Bond valuation The Garraty Company has two bond issues ...
bond valuation - Bond valuation The Garraty Company has two bond issues ...
Finance - which of the following is true with regards to rising interest rates? ...
Math - Term-structure of interest rates and Arbitrage The current term-structure...
finance - Which of the following is true with regards to rising interest rates. ...
Introduction to Finance: Harvesting the Money Tree - 7) The problem in ...
Hogan - Please help identify the topic subject in each paragraph: Interest rates...

Search
Members