asked 204k views
19 votes
Investment is inversely related to Interest rate?​

1 Answer

5 votes

Answer:

Interest rates and bonds have an inverse relationship: When interest rates rise, bond prices fall, and vice versa. Newly issued bonds will have higher coupons after rates rise, making bonds with low coupons issued in the lower-rate environment worth less.

Step-by-step explanation:

answered
User Weloytty
by
7.5k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.