60 713
Assignments Done
97,9%
Successfully Done
In April 2018

Answer to Question #70764 in Macroeconomics for Ashkar Muhammad

Question #70764
Why do bond prices fall when interest rate rise?
Expert's answer
As market interest rates change, a bond's coupon rate—which, remember, is fixed—becomes more or less attractive to investors, who are therefore willing to pay more or less for the bond itself. That is why bond prices fall when interest rate rise.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions