What happens to the price of bonds when interest rates go up 2024?
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Conversely, if interest rates were to fall after your purchase, the value of your bond would rise because investors cannot buy a new issue bond with a coupon as high as yours. In this case, your bond would be worth more than $1,000. Hence, it would trade at a premium. The bottom line is this.
2023-05-16 11:06:44
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Conversely, if interest rates were to fall after your purchase, the value of your bond would rise because investors cannot buy a new issue bond with a coupon as high as yours. In this case, your bond would be worth more than $1,000. Hence, it would trade at a premium. The bottom line is this.