- This topic has 1 reply, 2 voices, and was last updated 4 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘higher duration’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › higher duration
” However, the greater risk attached to the longer dated bond is consistent with the spot yield and credit spreads information provided, which shows that the yield curve is upward sloping i.e. yields are higher on longer dated bonds in a particular risk class.”
how does upward sloping yield curve increases the riskiness of a bond and justify its higher duration sir?
But I explain this in my lectures!!!
It is not that an upward sloping yield curse increases the riskiness – it is the other way round!!
The more the risk the higher the investors required rate of return.