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Homework answers / question archive / When the interest increases beyond the bonds coupon rate, what happened to the bonds price

When the interest increases beyond the bonds coupon rate, what happened to the bonds price

Finance

When the interest increases beyond the bonds coupon rate, what happened to the bonds price.

decrease

stay the same

increase

pur-new-sol

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decrease

bond price and interest rates are inversely related. so if interest rates increase the price of bond decreases