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1. If I have a portfolio of long term bonds, which of the following am I most worried about? 2. Assuming the same interest rate,
1. If I have a portfolio of long term bonds, which of the following am I most worried about?
2. Assuming the same interest rate, more money will be earned with simple interest on a savings account than if the account paid compound interest.
3. If I have a bond with a duration of 6.44 and the coupon rate is 6%. What is the amount I can expect my bond value to change if the market interest rate increases from 6% to 7%?
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