Price of long-term versus short terms bonds
Question: What impact do changing interest rates have on the price of long-term vs. short terms bonds? What do you think is happening in the bonds market today? What impact, if any does, does the stock market have on the bond market?
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Question: What impact do changing interest rates have on the price of long-term vs. short terms bonds?
What price should you pay fro the bond today? (Assume previous coupon has been paid today to the present holder of the bond.)
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