What is relationship between interest rate and bond price

Reference no: EM13303766

What is the relationship between the interest rate and bond price? After you purchase a bond, would you like to see the interest rate increases or decreases to earn the capital gains? Why? On August 5, 2011, Standard and Poor (S&P) downgraded the credit rating of U.S. Treasury securities from AAA to AA+. Do you agree or disagree with S&P's decision? Why?

Reference no: EM13303766

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