Answered step by step
Verified Expert Solution
Question
1 Approved Answer
One Treasury bond has a duration of 3.8 and another Treasury bond has a duration of 9.9 years. Interest rates have decreased. What has happened
One Treasury bond has a duration of 3.8 and another Treasury bond has a duration of 9.9 years. Interest rates have decreased. What has happened to the pricesof the bonds?
a. | Nothing | |
b. | Bond prices decreased | |
c. | Impossible to know | |
d. | Bond prices increased |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started