Golgappa.net | Golgappa.org | BagIndia.net | BodyIndia.Com | CabIndia.net | CarsBikes.net | CarsBikes.org | CashIndia.net | ConsumerIndia.net | CookingIndia.net | DataIndia.net | DealIndia.net | EmailIndia.net | FirstTablet.com | FirstTourist.com | ForsaleIndia.net | IndiaBody.Com | IndiaCab.net | IndiaCash.net | IndiaModel.net | KidForum.net | OfficeIndia.net | PaysIndia.com | RestaurantIndia.net | RestaurantsIndia.net | SaleForum.net | SellForum.net | SoldIndia.com | StarIndia.net | TomatoCab.com | TomatoCabs.com | TownIndia.com
Interested to Buy Any Domain ? << Click Here >> for more details...

Why are bond prices inversely related to interest rates ?

Answer Posted / sharad kakkar

suppose the market interest rate is 5%....
u take a bond at this interest for 1000$......
suppose the market interest goes up to 7%
now the value(price) of yr bond will go down as it will be more profitable for ppl to invest in current new bonds @7%, so the market value of yr bond bought at 1000 $ will go down......

Is This Answer Correct ?    11 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Define Non Convertible Debentures?

1029


What is LPG all about? When was it started?

1055


What are rbi monetary policy objectives?

1055


i have done BSc(I.T). i now wish to pursue MBA i finance. my interview is on Saturday.what do i tell them if they ask me why do i want to do my MBA after BSc(I.T)?someone please help me out

2131


What are the different types of trading that exist?

1121


What are the different policies of RRBs?

1169


What is fairtrade??????????????

2043


What are the different types of financial reporting?

991


What is debtors turnover ratio?

1052


In term of banking what do you mean by labs?

1009


What do you mean by FDI?

1168


Merger of SBS with SBI, point of in your view. is this good dicition or bad by cent. govt./sbi.

2662


HI, I am to be interviewed by KARNATAKA BANK for PO on the 7th of May 2010,. Anyone who had gone through interview process ,pls share ur interview experience as it will be invaluable for . Thanks. You can contact me on satind.singh@yahoo.com

2175


Any comments on G20 Summit?

1018


Define Beta.

1218