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Article: Interest rates key to bond price changes
- Article from:
- New Straits Times
- Article date:
- April 5, 2002
- Author:
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Alliance Unit Trust
New Straits Times
04-05-2002
Interest rates key to bond price changes
Byline: Alliance Unit Trust
Edition: 2*
Memo: (STF) - We begin today a five-part series on bonds contributed by Alliance Unit Trust.; About bonds - Part 1.
NOBODY can talk about bonds without discussing interest rates. These two financial jargons are simultaneously discussed in the financial world.
Interest rates are the key economic variable in determining bond prices.
While we often hear the negative relationship between bond prices and interest rates, a general definition and explanation about different types of interest rates would be helpful in understanding the entire concept. Therefore, we need ...