Question
Bond prices can fall either because of a change in the general level of interest rates or because of an increased risk of default or
Bond prices can fall either because of a change in the general level of interest rates or because of an increased risk of default or a change in the real rate of return (otherwise known as opportunity cost of capital). To what extent do floating-rate bonds and puttable bonds protect the investor against each of these risks?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
9th Edition
0324656122, 978-0324656121
