Treasury Note

If the prevailing interest rates for  instruments of similar risk and maturity were to increase from 5% to 10% next week, what would happen to the value of your bond in the secondary market?

Assume that today you purchased a Treasury Note with the following characteristics: Par (face) value = $1,000 Maturity = five years from today Coupon interest rate =5% ALL OTHER THINGS BEING EQUAL: If the prevailing interest rates for  instruments of similar risk and maturity were to increase from 5% to 10% next week, what would […]

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