#bond-valuation #bonds #finance #yield-curve
When the yield curve is steep, the bond is predicted to have a large
capital gain in the first years (dubious, innit?) before falling in price later.
If you want to change selection, open document below and click on "Move attachment"
Yield curve - Wikipedia, the free encyclopediaty become its new market rate. Because a bond is always anchored by its final maturity, the price at some point must change direction and fall to par value at redemption.
A bond's market value at different times in its life can be calculated. <span>When the yield curve is steep, the bond is predicted to have a large capital gain in the first years before falling in price later. When the yield curve is flat, the capital gain is predicted to be much less, and there is little variability in the bond's total returns over time.
Rising (or falling) interest rates rar Summary
| status | not read | | reprioritisations | |
|---|
| last reprioritisation on | | | suggested re-reading day | |
|---|
| started reading on | | | finished reading on | |
|---|
Details