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What Is Duration Theory Banking?

January 24, 2024 by Rebecca Patel

What Is Duration Theory Banking? “There must be some recognizable course or habit of dealing between the person and the banker” means that there must be some duration of dealings between the person and the banker. In other. words, a single banking transaction will not make a person a customer of a bank. What is

How Interest Rate Hikes Affect Short And Long-Term Bonds?

January 24, 2024 by Emily Lee

How Interest Rate Hikes Affect Short And Long-Term Bonds? When interest rates rise, bond prices fall (and vice-versa), with long-maturity bonds most sensitive to rate changes. This is because longer-term bonds have a greater duration than short-term bonds that are closer to maturity and have fewer coupon payments remaining. Do interest rates affect short-term bonds?