Bond prices change asymmetrically to rising and falling, Financial Management

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Bond prices change asymmetrically to rising and falling

"Bond Prices Change Asymmetrically to Rising and Falling Rates. For a given absolute change in interest rates, the percentage increase in an option-free bond’s price will exceed the percentage decrease. For the same change in interest rates, bondholders will receive a greater capital gain when rates fall than the capital loss when rates rise for all option-free bonds."

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