Stocks, Bonds, and Interest Rates Summary
For this week’s assignment, you will research and answer the following questions.
· Short-term interest rates are more volatile than long-term interest rates, so short-term bond prices are more sensitive to interest rate changes than long-term bond prices. Is this statement true or false? Explain.
· A bond that pays interest forever and has no maturity date is perpetual, also called perpetuity. In that respect, is a perpetual bond similar to
· a no-growth common stock; or
· a share of preferred stock?
Assignment Details:
· The paper should be one to two pages.
· Use APA format (title page, double-spaced, references).