Investments, 11th Edition (exclude Access Card)
Investments, 11th Edition (exclude Access Card)
11th Edition
ISBN: 9781260201543
Author: Zvi Bodie Professor; Alex Kane; Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 16, Problem 10PS
Summary Introduction

(A)

To choose:

The bond that will provide higher capital gains.

Introduction:

Interest rate change will have greater effect on long term bonds having longer duration as compared to short term bonds. So a bond with longer duration will have higher gain on bonds.

Summary Introduction

(B)

To choose:

The bond that will provide higher capital gains.

Introduction:

Interest rate change will have greater effect on long term bonds having longer duration as compared to short term bonds. So a bond with longer duration will have higher gain on bonds.

Summary Introduction

(C)

To choose:

The bond that will provide higher capital gains.

Introduction:

Interest rate change will have greater effect on long term bonds having longer duration as compared to short term bonds. So a bond with longer duration will have higher gain on bonds.

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What happens to my bond when interest rates rise?; Author: The Financial Pipeline;https://www.youtube.com/watch?v=6uaXlI4CLOs;License: Standard Youtube License