Longer-term bonds and short-term bonds, Financial Management

Questions

  1. How is a bond like a loan?                                              
  2. How does an investor receive a return from buying a bond? 
  3. Does a bond's yield to maturity determine its price, or does the price determine the yield to maturity? Explain it.                         
  4. Why the longer-term bonds more sensitive to changes in interest rates than short-term bonds?      

 

Posted Date: 2/16/2013 12:17:41 AM | Location : United States







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