yeboi4795 yeboi4795
  • 13-01-2020
  • Physics
contestada

Why does the value of your bond decrease when interest rates increase?

Respuesta :

matthewadeyinka10
matthewadeyinka10 matthewadeyinka10
  • 14-01-2020

Answer:

In economic studies, a bond's payment is fixed and will not change, but the market interest rates will change frequently. The change in the market interest rates will affect the bond's present value. Bond prices will go up when interest rates go down, and vice versa.

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