scorecardresearchRelationship between interest rate, bond prices and bond yields. An analysis

Relationship between interest rate, bond prices and bond yields. An analysis

Updated: 15 Dec 2021, 12:52 PM IST
TL;DR.
The relationship between bond prices and interest rates is inverse. But why and how they move against each other, we decode this for you here.
When the bonds are issued, the coupon rate is in consonance of the prevailing interest rates in the market.

When the bonds are issued, the coupon rate is in consonance of the prevailing interest rates in the market.