Why bond prices fall when yields rise
The seesaw between bond prices and yields explained with a worked example, plus what duration tells you about the size of the move.
Bonds
Bonds are loans that pay interest. Their prices move opposite to yields, which makes them a different kind of risk from stocks rather than no risk.
Live chart
What to learn
- Price and yield
- Duration and interest rate risk
- Credit quality
- Treasury auctions and the yield curve
Tools for bonds
Bond price from yield
Price a bond from its coupon, maturity and yield, and see how a yield change moves it.
Guides
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