Explain Why It Is Necessary for Bond Prices to Fluctuate

question 19

Essay

Explain why it is necessary for bond prices to fluctuate in response to changing interest rates?

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Definitions:

Statistically Significant

This term implies that the likelihood of the results happening by random chance is very low, underlining the importance of the findings.

Mean

In statistics, the arithmetic average of a set of numbers, calculated by adding all the values together and then dividing by the number of values.

P Value

A statistical measure that indicates the probability of the observed data occurring under the null hypothesis, used in hypothesis testing to determine significance.

95% Confidence Intervals

Statistical ranges, with a 95% surety, where the true value of a parameter, like a mean, is expected to lie.