Question : Weekly Online Forum: If there a decline in interest rates,
Weekly Online Forum: If there is a decline in interest rates, which would you rather be holding, long-term bonds or short- term bonds? Why? Which type of bond has the greater interest-rate risk? Explain why you would be more or less willing to buy a house under the following circumstances: You just inherited $100,000 Real estate commissions fall from 6% of the sales price to 4% of the sales price. You expect Polaroid stock to double in value next year. Prices in the stock market become more volatile. You expect housing prices to fall.