There is a negative relationship between interest rates and bond prices. TRUE OR FALSE??There is a negative relationship between interest rates and bond prices. TRUE OR FALSE?
True. If interest rates rise, the bond prices fall; and vice versa.There is a negative relationship between interest rates and bond prices. TRUE OR FALSE?
i am by no means an expert in economics, so you might want to disregard this, but my logic is this: a bond = bank pays you for your loan. you take a loan from the bank, you pay to use their money. when the fed lower the interest rate, the bank pays you less. so i would think yes, but then again, i might be freaking clueless
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment