5 lines
352 B
Markdown
5 lines
352 B
Markdown
This is the single most important relationship in the entire chapter:
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**Interest rates ↑ → Bond prices ↓** **Interest rates ↓ → Bond prices ↑**
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They always move in opposite directions. The reason: when new bonds are issued at higher rates, existing lower-coupon bonds become less attractive, so their price must drop to compensate buyers. |