Straight should be affected by the volatility as volatility rise hoga toh interest rate badhega aur price kam hoga but here it’s written that not affected
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Why will the value of straight board be affected by the volatility of the interest-rate it is clearly mentioned that they will be affected by level of change in the interest-rate and volatility doesn’t only mean that the interest-rate would increase volatility also means that it can increase or it can decrease we don’t know what will happen because nothing is mentioned straight bonds are only affected by the level of interest rate it means if interest rate is 5% today and if it becomes 6% tomorrow then the price of the bond will fall but if on the other hand interest-rate becomes 4% the price of the bond will rise but if the volatility increases or decreases there is no effect on the price of the bond this is level one stuff.