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What impact do changing interest rates have on the price of longterm bonds versus short term bonds?
Wiki User
∙ 16y ago
For the same change in interest rates, a longer term bond will move more than a shorter term bond. The price change of a bond is base on the duration of the bond. The formula for calculating duration is complex. But in simple terms, the duration of a bond is the percentage change of the price of a bond for every 1% change in interest rates. For example, assume a 5 year Treasury bond has a duration of 4.0 and a 10 year Treasury bond has a duration of 7.5. If both interest rates go up one percentage point, the 5 year bond will decrease in price by 4.0% and the 10 year bond will decrease in price by 7.5%.
Wiki User
∙ 16y ago
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What describes thematic struggles found in hamlet?
family obligations versus self-interest autonomy versus submission to authority
What thematic struggles are present in hamlet?
Family obligations versus self-interest Autonomy versus submission to authority APEX =]
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What describes thematic struggles present in Hamlet?
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What has the author Irving Lipkowitz written?
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What is one disadvantage of having money in certificate of deposit versus a savings account?
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