asked 208k views
3 votes
As the Portfolio Manager, explain the ways to measure the bond’s

price volatility in managing the fund strategies.

asked
User Sun Bear
by
8.1k points

1 Answer

6 votes

A bond’s volatility depends on two factors: its coupon rate and when it will be retired (at maturity or call date).

Other things being equal, the general rule is that: The longer the time until retirement, the greater the price volatility.

The lower the coupon rate, the greater the price volatility.

answered
User Soandos
by
8.5k points
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