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What will be true about your ending wealth if you violate the YTM assumption of holding a bond until maturity (e.g., sell prior to maturity)
What will be true about your ending wealth if you violate the YTM assumption of holding a bond until maturity (e.g., sell prior to maturity) after market rates unexpectedly increase when you go to sell the bond? Assume a fixed coupon bond. Multiple Choice It will be less than expected due to price risk. It will be more than expected due to the inverse relationship between rates and price. Cannot determine without knowing the magnitude of the rate change. It will be unchanged since it is a fixed coupon bond
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