Suppose you purchase a coupon bond with 20 years to maturity

| October 3, 2018

Suppose you purchase a coupon bond with 20 years to maturity for $1,000. Assume the bondpays coupons of $70 per year.Is it possible to make negative returns on a long-term U.S. government bond if the holdingperiod is less than maturity of the bond? Briefly explain.What name do we apply (and briefly explain) the type of risk long-term bond holders bearwhen the holding period is less than maturity?

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