Discussion Question 1:
What impact do changing interest rates have on the price of long-term vs. short –terms bonds? What do you think is happening in the bonds market today? What impact, if any does, does the stock market have on the bond market?
- The interest rate that is printed on the bond is rarely the same as the market rate when it is issued.
<br>- Lets say the bond is printed at 10% but the market rate is 8% then the price of the bind will bond will be issued at a premium to compensate for the rate
<br> - If the bond is printed at 10% but ...