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    Liz Khar's Avatar
    Liz Khar Posts: 5, Reputation: 1
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    #1

    Jan 29, 2006, 09:09 PM
    Interest Rate Risk
    Consider three bonds with 8% coupon rates, all selling at face value. The short-term bond has a maturity of 4 years, the intermediate-term bond has maturity 8 years, and the long-term bond has maturity 30 years.

    Which web site will be helpful for me to understand more about bonds.
    akhondzai's Avatar
    akhondzai Posts: 1, Reputation: 1
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    #2

    Feb 2, 2006, 10:51 PM
    www.investopedia.com
    Maritza Mena's Avatar
    Maritza Mena Posts: 1, Reputation: 1
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    #3

    Jul 23, 2011, 08:51 PM
    . Interest Rate Risk. Consider three bonds with 8% coupon rates, all selling at face value.
    The short- term bond has a maturity of 4 years,
    the intermediate- term bond has maturity 8 years,
    and the long- term bond has maturity 30 years.

    a. What will happen to the price of each bond if their yields increase to 9%?

    b. What will happen to the price of each bond if their yields decrease to 7%?
    The price of each bond if their yields decrease to 7%
    c. What do you conclude about the relationship between time to maturity and the sensitivity of bond prices to interest rates?
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