Solved: Bond price and to ytm, If interest rates in the economy rise after a bond has been issued, Finance Basics

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Bond price and to ytm

Question:

The yield to maturity is defined as the rate of return you would get if you bought a bond and held it to its maturity date. If interest rates in the economy rise after a bond has been issued (a) what will happen to the bond's price and to its YTM? (b) Does the length of time to maturity affect the extent to which a given change in interest rates will affect the bond's price?

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Finance Basics: Bond price and to ytm

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