Question: What is true about long term fixed rate bonds a. Compared to short term bonds, long term bonds are more volatile, seeing wider swings

What is true about long term fixed rate bonds a. Compared to short term bonds, long term bonds are more volatile, seeing wider swings with bigger interest rate changes b. Compared to short term bonds, long term bonds are more volatile, seeing wider swings with bigger interest rate changes Oc Because of the fixed rate, the bond price will be stable d. They are all discount bonds I bought a 30 year, 5% semiannual annual pay coupon $1,000 par bond for $1,200. What is the YTM closet to this number a. 1.9% b. 2.9% c. 3.9% d. 4.9%
Step by Step Solution
3.46 Rating (162 Votes )
There are 3 Steps involved in it
The detailed answer for the above question is provided below b Compared to shortterm bonds longterm ... View full answer
Get step-by-step solutions from verified subject matter experts
