Suppose that two years ago a 10-year bond in your portfolio, Ask an Expert

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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, Finance

Category:- Financial Management
Reference No.:- M92067444

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