Imagine you bought a candy bar for $1 that promises to give you 5 cents every year. If a new candy bar comes out offering 10 cents a year for the same price, who'd want your old candy bar? To make it appealing, you'd have to sell it for less. That's like bonds - when interest rates (#InterestRates) go up, the price of existing bonds goes down because their payouts look less sweet compared to new ones, making their yields (#Yield) go up to match the appeal.

#Wbtm #[0]

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