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Windbag1014

12/14/21 4:00 PM

#349800 RE: gr8investment #349796

Why would it? When interest rates for bonds rise, the chances are good that pre-existing bonds with lower interest rates will decrease in value for investors seeking the best possible rate of return at that time. Think of a teeter totter with rates at one side and price at the other. Why buy a bond with a 2% coupon today when you expect them to be available for 3% a year from now. Not always how it works but a good rule of thumb. My bet is on an increase in rates.