The Commerce Journal,Business and Local Businesses
*The Commerce Journal>>>Other - Business & Finance

Capital gain or loss of bonds?

Hello, I am just wondering if anyone can tell me whether this sentence is correct which I think as a misprint.

"Someone holding 15year-bonds for a five-year period will find that she has made a capital loss if long-term interest rates falls over the five year period."

Hasn't she made a capital gain?
since decreased long-term interest rate has raised the price of the bonds that she is holding.

I don't understand why the books says she has made a capital loss when long-term interest rate falled.

I hope you give me a clear answer and Happy New year!

Generally, bond values increase as interest rates fall. Because that sentence may have been taken out of context, I do not know if there might be other factors that would have
affected the value differently than what would have otherwise been expected. All things being normal, I would say that line is incorrect.

Have a great New Year

Tags
　　Cincinnati 　　Chicago 　　Boston 　　Austin 　　Atlanta 　　Other - Business & Finance 　　Other Taxes 　　United States Taxes 　　United Kingdom Taxes 　　Spain Taxes 　　Singapore Taxes
Related information
  • Why gold rate increases when dollar rate decreases?

    gold and oil are pegged to the dollar for the most part. Therefore when dollar goes down, there has to be an adjustment in the commodity price to reflect that. Its part of the reason oil has gone...

  • When you have new inventions how do you get it to prototype with no money,same?for patent?

    The thing is, you will need money. For protection, patent it. If you cannot afford to patent it, draw up the plans and have them notarized for now. It is not nearly as good at a patent but it is so...

  • Any good websites that help me learn Financial Analysis for project work?

    I recommend ...

  • What is phone # for monthly statement billing questions?Thanks?

    no. whats the company?

    ...
  • Ordering clothes from ae.com to the uk?

    well, 1 British pound = 1.9962 U.S. dollars. so, if you have 80 pounds, it's about 160 us dollars. And the shipping is 25 $... so you have a huge 135$ to spend on ae.com... American eagl...

  • Suggest a simple easy to read book to learn about currency trading?

    the best book you will read is Technical Analysis of the Financial Market for John Murphy , you can buy from amazon.com it is all depend on Technical analysis , if you want on line course you ca...

  • "If you were given the opportunity to do anything, and someone else would pick up the tab, what would you do?"

    Go to school and get all the degrees i want and not have to just pick one. then travel extensively not only enjoying myself, but doing what i can to improve the lives of others with the knowledge ...

  • When does the new Yellow Book come out?

    Oct- Dec each year

    ...
    • 　

    Commerce Categories--Copyright/IP Policy--Contact Webmaster