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Explain why there is an inverse relationship between the price of bonds and the relevant interest rate. Explain the effect of each of the following upon interest rates and upon the price of bonds:

November 6, 2014| Papers Haven

Explain why there is an inverse relationship between the price of bonds and the relevant interest rate. Explain the effect of each of the following upon interest rates and upon the price of bonds:
Maturity
Risk
Inflation
 

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