Risk on par Treasury Bond with different maturities

[[email protected]]

Is it due to higher impact of price change for a change in interest rate, on Long Term Bond compared to short term bond.

 

[ShaktiRathore]

Hi
Yes the 10 yr bond has higher duration as compared to 4 yr bond so that former is more sensitive to interest rate and therefore is more exposed to interest rate risk. Despite having same notional amount having different durations makes their risks differ from each other.
Thanks

 

[[email protected]]

Hi
Yes the 10 yr bond has higher duration as compared to 4 yr bond so that former is more sensitive to interest rate and therefore is more exposed to interest rate risk. Despite having same notional amount having different durations makes their risks differ from each other.
Thanks

Hi
Yes the 10 yr bond has higher duration as compared to 4 yr bond so that former is more sensitive to interest rate and therefore is more exposed to interest rate risk. Despite having same notional amount having different durations makes their risks differ from each other.
Thanks

Thnak you