Loading...
CFA Level 1
Fixed Income

Bond Price Reaction to Rising Interest Rates

Medium Fixed Income Securities Bond Markets

Understanding bond markets requires knowledge of various types of fixed income securities. A key factor affecting the attractiveness of bonds is the relationship between interest rates and bond prices.

If interest rates rise, what generally happens to the price of existing bonds? This relationship can influence investor behavior significantly, especially when considering long-term versus short-term bonds.

Hint

Submitted2.3K
Correct1.5K
% Correct65%