From November 1, 2001, to April 1, 2002, the 10year Tbond rate went from 4.2 percent to
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From November 1, 2001, to April 1, 2002, the 10‐year T‐bond rate went from 4.2 percent to 5.4 percent, and the face value of these bonds went down more than 9 percent. Thus, in only five months, holders of this security could have experienced a negative price change of 9 percent on a bond instrument typically considered default‐free.
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Investments Analysis And Management
ISBN: 9781118975589
13th Edition
Authors: Charles P. Jones, Gerald R. Jensen
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