bond yields
Hi Anna /anyone else who can answer,
My questions are not directly related to the original question but still concerning the same topic (bond yields).
(1) Why are the market values of long-dated stocks more volatile than short-term ones? Is it simply because in the former case the term is longer, hence more potential for uncertain events to operate and affect the price? Along the same vein, why are long-dated stocks less liquid than short-dated ones?
(2) Why do index-linked govt bonds have a higher discounted mean term than conventional ones?
(3) Can index-linked govt bonds also be irredeemable? (ActEd tutorial notes for Day 2, p16 seem to suggest not).
Thanks....
Last edited by a moderator: Aug 19, 2008