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Bond Prices and Interest Rates

Bond prices can be confusing. When the interest rate goes up, bond prices go down. Why is that the case? Imagine that you’ve purchased a 10-year Treasury bond for $10,000 with a 2% coupon rate (i.e. it pays $200 of interest a year). Let’s say you hold onto that bond for five years, which means […] The post Bond Prices and Interest Rates appeared first on The Biglaw Investor.
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