As interest rates increase, why does the price of a long-term bond decrease more than that of

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As interest rates increase, why does the price of a long-term bond decrease more than that of a short-term bond?

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Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Question Posted: Feb 21, 2024 05:01 AM

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As interest rates increase, why does the price of a long-term bond decrease more than that of

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The relationship between interest rates and bond prices is explained by the concept of interest rate risk When interest rates increase the prices of e...View the full answer

Foundations Of Finance

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