Relationship Between Bond Prices and Interest Rates

When bond prices go up, interest rates go down? Why is that? While the relationship between bond prices and interest rates is simple, the reasons can be quite complex for many people to understand. To help break down this relationship, the Khan Academy has put together a great tutorial to help you gain a deeper understanding of this relationship. By understanding the relationship between bond prices and interest rates, you’ll not only be better prepared to start investing, but you’ll also be more informed when you’re watching the financial news, reading the paper and talking with your friends about money. We hope you enjoy this great video!

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