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ates fall, what would be your decision in terms of your bond that has not yet matured? Would you make the same decision if the interest rates went up?...
If you purchased a bond today and interest rates fall, what would be your decision in terms of your bond that has not yet matured? Would you make the same decision if the interest rates went up?
The change in interest rates impact the bond prices. When interest rates change , theprice of an existing bond with a fixed interest must adjust to provide the same return asan equivalent , newly...