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What is the relationship between interest rates and bond prices?
Author: Asael Becker
Website: http://www.ABC-Bonds.com
Added: Sun, Sep 24, 2006 19:58:06
Category: Bonds Questions
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The relationship of bond prices and interest rates is an inverse relationship. For example, a bond with 6% interest will meant that it pays $60 annually per $1000 of face value.
This means that if the interest rate increases, the annual payment will also increase, depending on the face value of the bond.
keywords: Bond | Bonds | Financing | Stocks | Interest Rate About the Author:
Asael Becker answers frequently asked bonds questions at PrettyGreatAnswers.com.
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