Which bond has the greatest interest rate price risk?

Answer On One Hand: Bonds with Longest Maturity Carry Greater RiskTraders use a concept called duration to calculate the price risk of a bond in response to changes in interest rates. The higher the durat... Read More »

Top Q&A For: Which bond has the greatest interest rate price...

What describes the interest rate risk of a bond?

A bond is essentially a loan made by investors to a company or government in exchange for a promise of repayment of the loan, with interest. All bonds that pay interest are subject to interest rate... Read More »

How to Find the Interest Rate on a Bond?

A bond is effectively a private way to get a loan. Many companies use bonds to raise capital. The company gives the bond a par value, which is the face value of the bond, and the interest payment w... Read More »

What is the interest rate on a bond called?

The interest rate paid on a savings bond is called the bond's coupon. The rate, expressed in percentage, and maturity duration are printed on the bond's face. Lenders pay coupon semiannually until ... Read More »

How to Minimize Interest Rate Risk?

Interest is the cost of any loan, from a mortgage to a car payment to student loans and even investment loans. Minimizing the risk of interest rates moving against you not only ensures that a loan... Read More »