Asked by Robert
The longer the time to maturity the less the price increase from an increase in interest rates.
Answers
Writeacher
There is no question here. What kind of HELP do you need? You need to be specific when asking questions here.
drwls
If this is a True/False question, the answer is False.
Raising the prevailing interest rate in the bond market DECREASES the value of previously-issued fixed-rate bonds. The decrease in value is larger for longer-maturity bonds.
Raising the prevailing interest rate in the bond market DECREASES the value of previously-issued fixed-rate bonds. The decrease in value is larger for longer-maturity bonds.