Maturity date is called the bond yield to maturity

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The rate of return on a bond held to its maturity date is called the bond's yield to maturity.

If interest rates in the economy rise after a bond has been issued, what will happen to the bond's price and to its YTM? Does the length of time to maturity affect the extent to which a given change in interest rates will affect the bond's price? Why or why not? If you buy a callable bond and interest rates decline, will the value of your bond rise by as much as it would have risen if the bond had not been callable? Explain.

Reference no: EM131997751

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