Question: How do we get the 1-year and 10-year values from these numbers? Is it not possible to derive these numbers from the figures given and

How do we get the 1-year and 10-year values from these numbers? Is it not possible to derive these numbers from the figures given and this is just an example to illustrate interest rate risk? How do we get the 1-year and 10-year values from these numbers?

What is interest rate (or price) risk? Does a l- year or 10-year bond have more interest rate risk? dow toget? Interest rate risk is the concern that rising ra will cause the value of a bond to fall. 1-year Change 10-year Change $1,048 4.8% $1,386 +38.6% 10% $1,000 $1,000 15% -25.1% 956 - 4.4% 749 it deceavy 5% if increase . The 10-year bond is more sensitive to interest rate changes, and hence has more interest rate risk

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