The rate of return on a bond held to its maturity date is, Ask an Expert

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The rate of return on a bond held to its maturity date is called the bond's yield to maturity.

If interest rates in the economy rise after a bond has been issued, what will happen to the bond's price and to its YTM? Does the length of time to maturity affect the extent to which a given change in interest rates will affect the bond's price? Why or why not? If you buy a callable bond and interest rates decline, will the value of your bond rise by as much as it would have risen if the bond had not been callable? Explain.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92835402

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