Definition of Volatility - bonds - Finance dictionary
Volatility - bonds((See Chapter 21 of the Vernimmen))
The volatility of bonds is mainly due to the interest raterisk, affecting almost solely fixed-rate instruments. The value of a fixed-rate instrument is actually not fixed. It varies inversely to market rates. This sensitivity is stronger when the nominal interest rate of the bond and marketinterest rates are low.
Volatility - bonds((See Chapter 21 of the Vernimmen))
The volatility of bonds is mainly due to the interest raterisk, affecting almost solely fixed-rate instruments. The value of a fixed-rate instrument is actually not fixed. It varies inversely to market rates. This sensitivity is stronger when the nominal interest rate of the bond and marketinterest rates are low.
Volatility - bonds((See Chapter 21 of the Vernimmen))
The volatility of bonds is mainly due to the interest raterisk, affecting almost solely fixed-rate instruments. The value of a fixed-rate instrument is actually not fixed. It varies inversely to market rates. This sensitivity is stronger when the nominal interest rate of the bond and marketinterest rates are low.