The basic relationship between the price of a bond and prevailing market interest rates is an inverse relationship. This is actually pretty straightforward. For example, if you have a 6% bond (this means that it pays $60 annually per $1000 of face value) and interest rates jump to 8%, wouldn't you agree that your bond should be worth less now if you were to sell it?
Sometime with rudeness 'n' Sometime with love..... Sometime with perception 'n' Sometime with surprise... Sometime with worry 'n' Sometime with Hope... Life goes on.........
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