投资学课后习题答案Chap016.pdfVIP

CHAPTER 16: MANAGING BOND PORTFOLIOS CHAPTER 16: MANAGING BOND PORTFOLIOS PROBLEM SETS 1. While it is tr e that short-term rates are more volatile than long-term rates, the longer d ration of the longer-term bonds makes their prices and their rates of ret rn more volatile. The higher d ration magnifies the sensitivity to interest- rate changes. 2. D ration can be tho ght of as a weighted average of the ‘mat rities’ of the cash flows paid to holders of the perpet ity, wher