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Why does a rise in interest rates cause bond prices to fall 2024?
bond increase
Questioner:Max Thompson 2023-05-07 11:15:08
The most authoritative answer in 2024
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Ethan Hall——Studied at the University of Melbourne, Lives in Melbourne, Australia.
If market
interest rates decrease, the value of a
bond will
increase since the
bond's stated fixed
interest payments will be greater than the amounts available in new
bonds issued at current market
interest rates. (However, be aware that a
bond's call
price can limit the amount of
increase in market value.)
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