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Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-08-13 00:28

since a 30 year bond discounts 30 years of cashflows and those cashflows directly incorporate this compounding yield - its price moves more with yields than a comparable, shorter time to maturity bond

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regarding 1 year vs 30 year bond - imagine yields rise by 2%: βž– the price of the bond maturing in 1 year declines by discounting those 2% from 1 year of cashflows βž– a 30 year bond discounts for 30 years of cashflows

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