What is the relationship between the interest rate and bond


What is the relationship between the interest rate and bond price? After you purchase a bond, would you like to see the interest rate increases or decreases to earn the capital gains? Why? On August 5, 2011, Standard and Poor (S&P) downgraded the credit rating of U.S. Treasury securities from AAA to AA+. Do you agree or disagree with S&P's decision? Why?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is the relationship between the interest rate and bond
Reference No:- TGS0642458

Expected delivery within 24 Hours