EllaYun EllaYun

22-04-2022
Business

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Investment is inversely related to Interest rate?

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coffmana27 coffmana27

22-04-2022

Answer:

Interest rates and bonds have an inverse relationship: When interest rates rise, bond prices fall, and vice versa. Newly issued bonds will have higher coupons after rates rise, making bonds with low coupons issued in the lower-rate environment worth less.

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