Explain the relationship between changes in interest rates and bond prices.
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Explain the relationship between changes in interest rates and bond prices.
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Bonds have an inverse relationship to interest rates When the cost of borrowing money rises when interest rates rise bond prices usually fall and viceversa Bonds have an inverse relationship to intere...View the full answer
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Related Book For
Basic Finance An Introduction to Financial Institutions, Investments and Management
ISBN: 978-1285425795
11th Edition
Authors: Herbert B. Mayo
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