Solution-Relationship between bond price and interest rates

Relationship between bond price and interest rates

Reference no: EM133111367

'In restricting the pandemic and the related economic downturn, many developed economies faced short-term interest rates nearing zero, or even slipped to negative which has also resulted in the lower bond yields'.

Critically evaluate the inverse relationship between bond price and interest rates. How does it impact the long term yields?

Support your answer with relevant diagram/s as required.

Reference no: EM133111367

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Relationship between bond price and interest rates

Reference no: EM133111367

Reference no: EM133111367

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