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Philips Edwards heard about Interest Rate on CNBC. He wants to know HOW this risk impacts bonds differently based on the life of the bonds.
Philips Edwards heard about Interest Rate on CNBC. He wants to know HOW this risk impacts bonds differently based on the life of the bonds. Using the examples of 2 bonds such as a 5-year-note and a 30-year-bond, both with $1,000 par value, a 4.5% coupon rate, and the current yield to maturity of 3.75% and semi-annual compounding assumption, demonstrate numerically to Philips how the life of the bond impacts bonds interest rate risk.
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