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What are the factors that influence the bond interest rates or prices?

In: Economics, Bonds and Treasuries [Edit categories]

Answer:

1, bond price move inversely to interest rate

2. a decrease in yield results in a larger change in price than increase in yield

3. change in yield, long term bond price changed more than the short term bond

4. bond price increases with maturity at a diminishing rate

5. for a given change in yield, bond price with low coupon rate will change more than the bond price with high coupon rate.

First answer by ID2195237949. Last edit by ID2195237949. Question popularity: 5 [recommend question].

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