Finance, Forex and Investments

What is the relationship between interest rates and long term bonds?

Is it when 10 or 30 year bonds go up, interest rates typically go down or do rates go up and down with long term bonds?

Public Comments

  1. They generally move in the same direction.
  2. There is a inverse relationship between bond prices and interest rates. when rates rise, bond prices fall. I am 100 percent correct.
  3. Bond prices typically go down when interest rates go up. Because when rates go up new bonds are issued at those higher rates and it makes existing bonds less valuable. And vice versa. The longer the maturity of the bond generally the more a change in interest rates affects the price.
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