You hold a portfolio of bonds. You read in the financial press that market interest rates have

Question:

You hold a portfolio of bonds. You read in the financial press that market interest rates have increased. Holding everything else constant, what has just happened to the duration of your bond portfolio?

a. Increased since bond prices have fallen

b. Decreased since bond prices have risen

c. Increased since bond prices have risen

d. Decreased since bond prices have fallen

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: