4 ms·
It's not just that. A bond's price is simply the sum of its discounted future cash flows. i.e. the coupon value divided by (1+) the interest rate. When interest
by curiousgal 4y ago
It's not just that. A bond's price is simply the sum of its discounted future cash flows. i.e. the coupon value divided by (1+) the interest rate. When interest rates rise, the price goes down.