Explain the causes for this inverse


It is often said that bond prices and interest rates are indirectly related. Explain the causes for this inverse relationship. What are the effects on current bondholders when interest rates increase? Decrease? Why does this relationship work this way?

 

Solution Preview :

Prepared by a verified Expert
Finance Basics: Explain the causes for this inverse
Reference No:- TGS0930680

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)