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    What is the maturity risk premium on a 5-year bond?

    How do you figure this out? What is the formula?

    0  Views: 489 Answers: 1 Posted: 15 years ago

    1 Answer

    More info needed

    call Schwab, Ameritrade, ask for bond desk.

    maturity risk+++++one of credit worthness{ Greek debt at 18%}
    you may get return "ON MONEY"++++BUT NOT RETURN OF YOUR MONEY
    \\\
    bONDS LIKE MUCH ELSE DEPENDS ON HOW MUCH INTEREST RATES HAVE CHANGED
    UP OR DOWN

    IE+++++10 YR BOND 4% FOR $10,000++++IF INTEREST RATE NOW 5%
    IF YOU SOLD NOW $7500

    INTEREST RATES RISE, FACE OF BONDS FALL++++PRIOR TO MATURITY
    GOOD LUCK

    BONDS CAN be more risky than stocks{ interest rates is a fools game}


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