Question
Can you please explain this in very simple terms using examples? I kind of understand it, but I can't fully grasp the concept without an
Can you please explain this in very simple terms using examples? I kind of understand it, but I can't fully grasp the concept without an actually example/real numbers to go with it.
"Bond Prices Change Asymmetrically to Rising and Falling Rates. For a given absolute change in interest rates, the percentage increase in an option-free bonds price will exceed the percentage decrease. For the same change in interest rates, bondholders will receive a greater capital gain when rates fall than the capital loss when rates rise for all option-free bonds."
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