What happens to the price of an existing bond (in the secondary markets, which are typically...

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Finance

What happens to the price of an existing bond (in the secondarymarkets, which are typically over-the-counter) when interest ratesrise across all maturity lengths?

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Bond prices fluctuate in the secondary market just like any other security The main cause of changes in bond prices is changing interest rates When interest rates rise bond prices fall and when interest rates fall bond prices rise However how much bond prices changes with interest rates depends primarily See Answer

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What happens to the price of an existing bond (in the secondary markets, which are typically...

70.2K

Verified Solution

Question

Finance

What happens to the price of an existing bond (in the secondarymarkets, which are typically over-the-counter) when interest ratesrise across all maturity lengths?

Answer & Explanation Solved by verified expert

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