Why are longer-term bonds more sensitive to changes in interest rates than shorter-term bonds? Describe the four key bond valuation relationships.

FINANCIAL MANAGEMENT 3

Why are longer-term bonds more sensitive to changes in interest rates than shorter-term bonds? Describe the four key bond valuation relationships.

Text: Financial Management: Principles and Applications Thirteenth Edition ISBN (U.S.): 9780134417219 Sheridan Titman, Arthur J. Keown & John D. Martin