The bond become more attractive to investors

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Reference no: EM13917667

Briefly explain whether you agree with the following statement:

a) "If interest rates rise, the bond become more attractive to investors, so bond prices rise. Therefore, when the interest rates rise, bond prices will also rise"

b) Your investment advisor has just given you the following advice: "Long-term bonds are a great investment because their interest rate is over 20% Is he necessarily right? Explain

Reference no: EM13917667

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