Suppose that two years ago a 10-year bond in your portfolio


Suppose that two years ago a 10-year bond in your portfolio was selling for $1,100.

Today, the same bond is selling for $1,050. You have researched the price of 10-year bonds of the same credit rating over the past two years and found that interest rates have declined.

Explain why the bond's price declined despite the fact that 10-year interest rates have declined.

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Financial Management: Suppose that two years ago a 10-year bond in your portfolio
Reference No:- TGS01715496

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