However, bond price also declines when interest rate increases, but changes in the present value of sum of each coupons times timing (the numerator in the summation) are larger than changes in the bond price (the denominator in the summation).
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It is equal to the maturity if and only if the bond is a zero-coupon bond.
Customer
01/22/2025
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01/22/2025
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01/22/2025
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01/22/2025
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However, bond price also declines when interest rate increases, but changes in the present value of sum of each coupons times timing (the numerator in the summation) are larger than changes in the bond price (the denominator in the summation). https://www.divephotoguide.com/user/qjstndbljnrwtqsdbpw