Why market value of a bond will fall when the interest rate rise on new bonds of equal risk?

1 answer

Answer

1088714

2026-03-05 11:10

+ Follow

Because the bond is no longer making money at the rate of current prices. Its future value is less than other equally face bonds so its market price dropes to compensate

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.