Relationship between bond prices and interest rates khan academy

What It Means To Buy A Company's Stock

The difference between a bond and a stock.

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Basic Shorting

Shorting Stock

What does it mean to short a stock?

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Shorting Stock 2

More on the mechanics of shorting stock.

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Is Short Selling Bad?

A discussion of the virtues and/or vices of short selling.

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Corporate Debt Versus Traditional Mortgages

Understanding how most corporate debt is different than most personal mortgages.

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Introduction To Bonds

What it means to buy a bond.

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Introduction To The Yield Curve

Introduction to the treasury yield curve.

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Relationship Between Bond Prices And Interest Rates

Why bond prices move inversely to changes in interest rate.

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Treasury Bond Prices And Yields

Why yields go down when prices go up.

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Annual Interest Varying With Debt Maturity

The Yield Curve

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Channel: Khan Academy
Categories: Economics  

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Why bond prices move inversely to changes in interest rate
More free lessons at: //www.khanacademy.org/video?v=I7FDx4DPapw

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What is the relationship between interest rates and bond price?

Bond prices and interest rates move in opposite directions, so when interest rates fall, the value of fixed income investments rises, and when interest rates go up, bond prices fall in value.

What is the relationship between bond prices and interest rate yield to maturity?

A bond's price moves inversely with its YTM. An increase in YTM decreases the price and a decrease in YTM increases the price of a bond.

What is the relationship between bond prices and interest rates quizlet?

bond prices and interest rates are inversely related. The interest rate on the bond (or the yield to maturity) is the discount rate. As the discount rate gets larger, the price of the bond will decrease. As the coupon rate increases, the bond price will increase.

What happens to bonds when interest rates rise?

Investors generally consider this a negative development because of the inverse relationship between bond yields and bond prices. When yields rise, prices of bonds already in the market fall. This is a function of supply and demand.

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