Market risk 117...risk about the uncertainty of interest rate changesIf interest rates rise, the price of bonds will fall
If interest rates fall, the price of bonds will riseThe reaction of long-term bonds is more pronounced thanthe reaction of short-term bondsBond prices50 -
250 200 150 1000.020.040.060.080.100.120.140.16interest rateprice10 year bond30 year bondMulti-period deterministic cash flows: FI securities - Market risk