The rate of return on a bond held to its maturity date is called the bonds yield
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Question:
The rate of return on a bond held to its maturity date is called the bonds yield to maturity. If the interest rate in the economy rise after a bond has been issued, what will happen to the bonds price and to its YTM? Does the length of time to maturity affect the extent to which a given change in interest rate will affect the bonds price? Why or why not?
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