What happens to the price of bonds when interest rates go up 2024?

Carter Davis | 2023-05-07 11:06:44 | page views:1308
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Ava Roberts

Studied at the University of Lagos, Lives in Lagos, Nigeria.
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

Harper Wilson

QuesHub.com delivers expert answers and knowledge to you.
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.
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