Bonds Interest Rate

Will interest rates on municiapl bonds rise in the next 6 months? Why? I'm trying to learn more about various bonds, and i'm interested what factors affect municipal bond interest rates. I know that tax changes and credit risk are the two primary drivers, however, will anything affect these two factors over the next 6 months? Specifically, i'm researching District of Columbia munis. Thanks!

Bonds & interest rates: what is the relationship? I require a detailed explanation of the relationship between bonds and interest rates. Could you please tell me how it works with interest rates fall and rise, what happens to bonds, the roles of bonds, and anything else that relates to this issue. Thank you so much

How do savings bonds interest rates work? Are they fixed interest rates in that when you buy it, it keeps increasing for 30 years at that rate? Or are they ever changing, depending on the economy. Therefore, do you get the most if you cash out when the economy is good or bad, or should you just wait until the end of the 30 year period?

What is the relationship between interest rates, bonds, and stock prices? I always am hearing people talk about how important the interest rates that the government sets are. The have some sort of effect on stock prices and bond prices. What is that relationship is and WHY?

Why does an interest in buying bonds cause interest rates to fall? I read in the New York Times today that more people are buying bonds than before, and this is causing interest rates to fall. Why does an interest in buying bonds drive down interest rates?

Where can I learn about the relationship between goverment bonds and interest rates? I do not understand it? If a U.S treasury bond is considered risk free by virtue of the government's backing, what is the risk? I read there is risk associated with interest rates. What does that mean? What is the relationship with interest rates to bonds where risk is concerned? Anything at all on this subject will help. I can't find anywhere to find this information.

What happens to my bonds if interest rates go up? I own different types of bonds, if price falls then rates go up, so is it good to hold for interest rate payments or sell if prices fall?

Why would a company call bonds if interest rates drop? I sort of get the concept but tell me if I'm right. If bank interest rates drop, the prices of bonds will go up. So obviously a company would want to issue bonds that sell for more, but why would it call current bonds?

Selling and Buying Bonds with Interest rates? If you held bonds, would u sell at a high or low interest rate? If you held no bonds, would u buy at a high or low interest rate?

What is the relationship between government bonds and interest rates? Bonds and stock market? I know I should know this since I am an econ major. But this is something that has confused me for a while. I'd like to not only know the relationship but also, why the relationship holds true. Thanks!

How does the government raising interest rates makes making security bonds more attractive? Is it because raising interest rates makes bond's interest higher as well? But doesnt bond also only attractive if the national interest is low since the interest of the bond has a higher yield compared to when the interest is higher which eats up the overall gain from a bond's interest. Unless its only attractive if the current interest rate is higher and the new bond issued thus automatically becomes higher which makes it attractive. However, for the old bonds issued with lower interest rates makes it less attractive on the second market. Economist , professors please how does this work? thanks

Whats the relationship between interest rates and bonds? When interest rates ______, the bonds that were bought when interest rates were _____ will ________ in value. (a) fall, high, decrease (b) rise, low, increase (c) fall, high, increase (d) rise, low, not change Thanks to all of you who answered. I would choose Best Answer for all of you, but Yahoo won't let me do that, unfortunately =( But you all deserve 10 points .

What is the relationship between interest rates and long term bonds? Is it when 10 or 30 year bonds go up, interest rates typically go down or do rates go up and down with long term bonds?

Bonds and interest rates. Why do the value of bonds go down as interest rates go up? I am sure that interest rates will go up. What kind of investment can I purchase if I feel that interest rates will go up?

Why does a decrease in interest rates mean and increase in the price of bonds? I used to understand the relationship between bond prices and interest rates and I don't know why I can't remember! I am searching my notes for a good example. Can you help me? I am studying for a test.

How does the buying and selling of Treasury bonds affect interest rates? I've read it before, but I would like a refresher.

Suppose interest rates on Treasury bonds rose from 5 to 9 percent as a result of higher interest rates in Euro? Suppose interest rates on Treasury bonds rose from 5 to 9 percent as a result of higher interest rates in Europe. What effect would this have on the price of an average company’s common stock?

savings bonds and rising interest rates, a good investment? If interest rates rise rapidly, how do savings bonds do for savings in those times? What about T-Bills? What about if the market declines substantially? Are bonds a good place to be savings wise?

Who tracks the average interest rate fluctuations on bonds? I know that bond interest rates are determined by higher or lower bond prices because of supply and demand, but is there some sort of place somewhere that keeps a record of all the buying and selling of bonds to determine the average daily fluctuations of bond interest rates. so they can put that average rate on the internet? How else would they know what the average rate is???

Is there any reason to buy bonds when interest rates are rising? If not, where should one look for safe income and protection against inflation?

How, when treasury bonds climb interest rates go down? Looking for an easy to understand explanation for a money class in High School. Thanks!

How does the Government sale of bonds affect interest rates?

Are the interest rates of long-term bonds set so that they will just make up for the estimated inflation? I'm referring to the long-term (15-20 yr) bonds of banks, or governments such as the US or Canada. Or, is the interest rate of a bond set so that it will make up for estimated inflation, and then extra for the fact that your money was tied up?

A rise in interest rates on Treasury Bonds and the effect on the average price of a company's common stock Suppose interest rates on Treasury bonds rose from 5 to 9 % as a result of higher interest rates in Europe. What effect would this have on the price of an average company's common stock and why?

When bonds interest rate rose from 7 to 14 percent than this have effect on the price of company's shares? Suppose interest rates on Treasury bonds rose from 7 to 14 percent as a result of higher interest rates in Europe. What effect would this have on the price of an average company’s common stock?

What is a good web site for daily effective interest rates on bonds of all maturities? Not just the 1 year, 3 year, 5 year, 10 year maturities, but also all the dates in between.

Why does the increase in supply of government bonds cause interest rates to rise?

Taming Inflation Investors sell bonds when interest rates rise because newer debt comes to market with higher? can someone explain how bonds come into play when inflation is rising and people are pulling out of equities. pls explain the 1st sentas well

Market interest rates and bonds in the secondary market...? If market interest rates are higher than the interest rate of an already issued bond, what happens to the yield of the bond in the secondary market? goes up? down? stays the same?

Which is better to own: bonds or preferred stocks when interest rates are rising? I own preferred stock in good, solid companies. Since interest rates have started going up the stock value has started to go down slightly. I am wondering if preferred stocks genenearlly go down as interest rates go up and if it is better to buy bonds (I've never owned bonds before). Please not that I am asking about preferred, not common, stock.

The link between buying government bonds and long-term interest rates? Can you explain how will purchasing government bonds reduce long-term interest rates and revive economies growth? I would truly appreciate if you cold explain it in a lay terms. Gee Madison, thanks.. I would have never thought of that.. Maybe just buying a "The link between buying government bonds and long-term interest rates" book might be a good idea, what do you think? :)

If interest rates fall why will the market value of bonds increase? A. The current bond will earn more interest than newer bonds issued B. The current bond will earn less interest than newer bonds issued C. There is no relationship between interest rate and the market value D. The interest on the current bond will adjust to the new interest

when the russian govt defaulted on its debt in 1998, why did interest rates rise on bonds issued by other deve? I've been reading up on this topic for my econ class, but i can't find an exact reason as to why interest rates would rise for other countries. please help. thanks!

With the economy in recession, and interest rates falling, is it a good time to invest in US security bonds? I hear that this may be a good way to secure some of my money until the rough times are over, but I don't know enough about these bonds to make a final decision. How different are they from the regular certificates of deposit and can I get higher rates security bonds than CDs at the moment?

For Bonds..if interest rates go down..the market value of bond will go up why? For Bonds..if interest rates go down..the market value of bond will go up and you will get "capital gain" wouldnt you lose money since the interest rate dropped? I am confused Thanks in advance

Do high yield / junk bond prices decrease when market interest rates rise like they do for high grade bonds? When the economy grows and interest rates rise, prices of high-grade bonds tend to drop. But what is the effect on prices of high-yield / junk bonds when economies grow and market interest rates rises?

Why are bonds and interest rates inversely related?

1998 russian debt defaut!! why did interest rates rise on bonds from other countries? When the russian govt defaulted on its debt in 1998, why did interest rates rise on bonds issued by other developing countries?

How does Moody's AAA bond rating work as an indicator for interest rates? I read on Wikipedia that Moody's AAA bond rating reflects interest rates. I really would like to know why so I can write up about it in my dissertation. I need interest rate data but nothing goes as far back as the 1920s in America. Moody's AAA bond rating would be a perfect replacement if I can just find out why it's so good for determining interest rates!

Which of the following bonds will have the greatest percentage increase in value if all interest rates decreas? Which of the following bonds will have the greatest percentage increase in value if all interest rates decrease by 1%? 20-year, zero coupon bond, a 10-year, zero coupon bond, a 20-year, 10% coupon bond, a 20-year, 5% coupon bond, or a 1-year, 10% coupon bond.

why does the increase in supply of government bonds cause interest rates to rise?

Using the supply and demand for bonds framework, why are interest rates procyclical (rising when the economy i Using the supply and demand for bonds framework, why are interest rates procyclical (rising when the economy is expanding and falling during recessions).

Is it still a good idea to invest in U.S. Government bonds,Interest rates being as they are now,what kinds?

Who controls the day-to-day fluctuations of bond interest rates? Do people invest in interest rates or futures or something? Or is it more of a supply and demand thing?

Why does the value of bonds go up when interest rates come down? This has been a comment that has been made over and over.. I am trying to understand it. Thanks.

Falling Interest Rates and Demand for Bonds? “Falling interest rates have triggered a rally in the bond market that has many investors rejoicing.” Why would falling interest rates trigger a rally in the bond market?

Chart that shows effective yield of tax free muni bonds for various tax brackets and interest rates? I am looking for a chart that shows effective yield of tax free muni bonds for various tax brackets and interest rates. I am not looking for a financial calculator on the web. I need a chart that can be printed out. Thank you for your suggestions.

Government Bonds and Interest Rates? “According to Ibbotson Associates, 20 – year government bonds are on track to post annual returns of 30% by the end of 1995. That would lag only the 40% returns of 1982 and 31% returns of 1985” In 1995 the interest rate was far below 30%. How could 1995 returns on bonds be as high as 30%?

Bonds and interest rates? Dealing with bonds, why would a company borrow for longer periods of time when the interest rates are low, and shorter periods when interest rates are high?

what affect does rising interest rates have on bonds and term deposits? generally do people who have these benefit from increases?

if interest rates are expected to go up, is it logical to buy short or long term bonds? (buying only bonds)? -given the scenario that the interest rates are expected to go up and you are allowed to buy bonds only, as a portfolio manager should you buy short term or long term bonds? and why? -how does that adverse connection between bond prices and interest rates affect this decision? thank you in advance, this is a question asked in my money banking class.

If interest rates have risen since a bond was issued the bonds price will fall until the yield to maturity is? 1. less then the current interest rate 2. more then the current interest rate 3.equal to the current interest rate 4. less then comparable stock options

Can anyone help with bonds interest rate? here is the problem! You can buy a US government savings bond for half its face value today and at maturity in 12 yers you'll receive the full fave or par vaule. that means you can buy a $100 par vaule savings bond for only $50 today and in 12yrs you can redeem it for $100. what interest rate are you getiing in this deal? I'm VERY confused. if you can answer please show your work to better help me understand. Thanks in advance!

What is the relationship between decreasing the Federal Government's Deficit and Bond Markets/Interest Rates? I am reading Bill Clinton's "My Life" and I don't understand how cutting the government's spending and budget deficits in his 1993 budget would decrease interest rates and influence the bond markets. Please explain.

If interest rates decline, would a callable bond be more valuable than a non callable bond? The exact question is: If you buy a callable bond and interest rates decline, will the value of your bond rise by as much as it would have risen if the bond had not been callable?

What Bank or Building Society in the United Kingdom has the best interest rates for One Year Bonds ? This would really help if you reply to this question. Thanks for your time.

If interest rates are headed up, should I wait to buy bonds and CD's? I have some cash I want to put into CDs and/or bonds. I have heard in the past few days that interest rates may be on the rise soon. Does this mean that interest rates on CDs (either at banks or bought on line) and bonds will go up too? Should I wait a couple of months before buying anything? My money is parked in a savings acct making 1% interest.

Do mutual funds or bonds have interest rates? I am on the same project

Economics students or Financial professionals, What happens with high interest rates and bond yields? Rising interest rates are a major threat to equities. But what about bond yields? High interest rates have a positive influence bond yields, right? Got it ! Thanks SDD, I really wanted to get that off my chest, it was bugging me.

if there is a decline in interest rates, which would you rather be holding, long term bonds or short term? why? which type of bond has the greater interest rate risk?

Impact of interest rates on a bond's price that will be purchased from original institution & held to maturity? I plan to buy several bonds from the original institution and also plan to hold the bond to maturity. I understand the inverse relationship between bond prices and interest rate, but since I plan to buy & hold bond to maturity, should I really be concerned about interest rates?

how does buying bonds and cutting interest rates effect unemployment?

For which bond will the effect of a change in interest rates be greater? You are holding two bonds; one matures in 1 year and the other matures in 30 years. What do you expect to happen to the price of each bond when the interest rate rises? For which bond will the effect of a change in interest rates be greater?

Which of the following two bonds is more price sensitive to changes in interest rates? A par value bond, X, with 10 years-to-maturity and a 10% coupon rate or a zero-coupon bond, Y, with 10 years-to-maturity and a 10% yield-to-maturity. A) Bond Y because of the longer duration. B) Bond X because of the longer time to maturity. C) Bond X because of the higher yield to maturity. D) Both have the same sensitivity because both have the same yield to maturity. E) None of the above are true.

what kind of bond would i buy if interest rates are high but going down? i have general bond question if interest rates are high but expected to go down i know that by book definition i would want to buy a long term maturity bond with a low coupon my question is why buy a low coupon long term bond if i can just buy a high coupon long term bond? When interest rates come down then both bonds will go up in value but the bond with the higher coupon will always yield a higher yield is that correct if not please explain?????

Why do interest rate changes affect the price of longer term bonds more? Hello, I understand the concept that higher interest rates mean lower bond prices and vice versa. However, what I don't understand is why an interest rate decrease causes the price of long-term bonds to rise at a higher percentage than the rise of short-term bond prices. Likewise, if interest rates go up, why would the long-term bond prices do down at a higher percentage than short-term bond prices. Would appreciate anyone's help. Thanks!

What happens to Bond duration and Bond coupon rates when interest rates rise? What happens to Bond duration and Bond coupon rates when interest rates rise?

How can an increase in the interest rate make bonds more attractive and reduce their price? The Demand for bonds an increase in the interest rate makes bonds more attractive, so its leads people to hold more of their wealth in bonds, as opposed to money. However, you also learned that an increase in the interest rate reduced the price of bonds. How can an increase in the interest rate make bonds more attractive and reduce their price?

Do you think US Saving Bonds interest rate will rise next month? I buying up "I" Bonds and wondering if I should wait til next month

In this environment of lowering interest rates does it make sense to park cash in an international bond fund? I have roughly $4000 a month I need to save for the next year. so I'm wondering if it makes sense to invest in an international bond mutual fund, and earn more than a plain jane savings account.. What do you folks think? I am correct in stating that lowering interest rates causes bonds to increase correct? Thank you

Is now a good time to invest in bonds due to decreasing interest rates? Obviously bonds are a relatively safe form of investment (particularly government bonds from one of the world’s major economies), but aside from this, what about the possibility of the value of bonds increasing? With fears of recession looming, and deflation now a real possibility for the UK economy over the next couple of years, one could say that it is almost an inevitability that the BoE will further decrease interest rates. As bond prices are inversely proportional to interest rates, now would seem a logical time to invest in bonds, as it appears a safe bet the BoE will lower interest rates, which in turn will increase the value of bonds. Quite obviously, this rise in the value of bonds is of no benefit if the bonds are held till maturity. However, it would certainly appear to be advantageous to those willing to trade bonds. Is this train of thought correct? Hi Robert M Please correct me if I'm wrong, but if the bonds are held till maturity, the coupon (for fixed rate bonds) and principle payments are still the same, irrespective of whether or not the bond value (for trading) fluctuates. Therefore, if the bonds are held till maturity, the bond holder does not realise any benefit if the value of the bonds increase.

As interest rates rise, do bonds pay more or less? I need this for a class I'm taking online.

When the 10 yr bond rates goes down, do mortgage interest rates go down or up? How is it related? When the rates for the 10 yr bond goes down, does the mortgage interest rates go up or down with the bonds? Why is there a relation and how does it work? Please help you smart finance peeps out there! : )

Why is a yield on a coupon bond less than a zero coupon bond if interest rates are increasing? The answer said like the yield is an average of the spot rates. But can someone give me a more explicit explanation. I am really confused. Suppose these were like treasury bonds. and the maturity of both bonds are the same year.

In laymens terms how exactly does interest rates affect the prices of bonds and bonds in general?

How does the sale 10 yr treasury Bond affect interest rates? I know when Yields go down, rates go down. What I dont understand is if the fed is buying 11b in 10 yr treasuries wouldnt that make yeild go up forcing rates up?

How does fluctuating interest rates in the international market impact foreign investments in bonds?

How can GOv raising interest rate makes bonds more attractive to buy? Is it only applicable for newly issued bonds that corresponds to the interest rate mandated by the federal government? What about bonds on the secondary market? SInce raising federal interest rate makes the older bonds less attractive since the increase interest rate eats up more of the predetermined rate of the old bonds thus resulting into lower yield? SO basically, federal raising interest rate only makes newly issued bonds attractive, but not for the secondary market. RIght?:

cd vs. bonds higher interest rates? what pays higher interest a c d or a bond from the same bank-over the same period of time

Why are interest rates for T-bills and corporate bond rates are less correlated? While for CDs and T-bills, the interest rates are correlated.

help accounting question? effects on bonds?? decrease in interest rates? what effect will a decrease in intrest rates below the face interest rate and before a bond is issued have on the cash received from the bond issue? what effect will the decrease have on the interest expense? what effect will the decrease have on the amount of cash paid for interest??

what is a good way to earn some extra money when interest rates are in the toilet?stock market? bonds? what about US Treasury bills?

Inflation and Interest Rates and Bond Prices? Can any one tell me the relation between the three variables of Interest Rates , Inflations and Bond Prices.If inflation is on the north move,Govt would like to curtail demand by decreasing the money supply in the economy - Am I right ? increasing the interest rates can be one option and thus increased interest rates would mean Higher COUPAN Rates meaning Low Bond Rates for existing bonds in the market ? Am I on the right track ? Please advice

How is duration of bonds affected by a fall in interest rates?

What are some relationships between different interest rates? Are there any well known relationships between different interest rates? For example: The 20-year T-Bond rate is usually 2% above 3-month T-Bills. Stuff like that. Is there a website that would have things like that? It doesn't have to be just treasury security rates, it can be inflation rates, Federal Reserve interest rates, whatever. Thanks

What are some typical relationships between different interest rates? Are there any well known relationships between different interest rates? For example: The 20-year T-Bond rate is usually 2% above 3-month T-Bills. Stuff like that. Is there a website that would have things like that? It doesn't have to be just treasury security rates, it can be inflation rates, Federal Reserve interest rates, whatever. Thanks Are there some ratios between rates that indicate things about an economy?

are interest rates trade able like bonds? can they be traded in secondary markets any type of interest rates.. cars, home, federal.

i need help figuring out the interest rates on I- savings bonds.? i want to purchase ibonds and the rate is 5.64%, 0.70% fixed rate, and a return rate of 4.92%. what do these rates mean? does it mean that they will give me 5 dollars and 64 cent for every 100 dollars i have invested in a savings bond? does it mean something else, i just want to know how much i will make, and if i should be doing this or a certificate of deposit at me bank?

In this environment of lowering interest rates does it make sense to park cash in an international bond fund? I have roughly $4000 a month I need to save for the next year. so I'm wondering if it makes sense to invest in an international bond mutual fund, and earn more than a plain jane savings account.. What do you folks think? I am correct in stating that lowering interest rates causes bonds to increase correct? Thank you

Something about bonds interest rate? What does this mean? "The interest rate the bond pays must be competitive with rates available to investors elsewhere" And this... "The longer the loan period, the higher the interst rate required to persude investors to tie up their funds for the longer period".

1. A decrease in the expected future interest rate makes bonds ______________.? a. Less attractive b. More attractive c. Less expensive d. More expensive 2. As interest rate falls in recession, the bond prices are likely to___________. a. Decrease b. Increase c. Be stable d. Fluctuate 3. There is no guarantee that a bond issuer will make the promised payments is known as the: a. Default risk b. Inflation risk c. Interest rate risk d. Systematic risk 4. The greater the inflation risk, the __________ will be the compensation for it. a. Smaller b. Larger c. Zero d. None of the given options 5. ___________ risk arises from the fact that investors don’t know the holding period yield of a long term bond. a. Default risk b. Inflation risk c. Interest rate risk d. Systematic risk 6. The ___________ are an assessment of the creditworthiness of the corporate issuer. a. Bond yield b. Bond ratings c. Bond risk d. Bond rate 7. The lower a bond’s rating, the __________ will be its price. a. Higher b. Lower c. Equal to d. No change 8. A plot of the term structure with YTM on Y-axis and time to maturity on X-axis is called ___________. a. Demand curve b. Supply curve c. Yield curve d. Leffer curve 9. Yields on short term bonds are ___________ than the yield on long term bonds. a. Less volatile b. Higher c. Lower d. More volatile 10. The KSE 100 Index contains a representative sample of common stock that trade on the ________________. a. Lahore Stock Exchange b. Karachi Stock Exchange c. Islamabad Stock Exchange d. New York Stock Exchange 11. The expectations theory of the term structure assumes: a. Buyers of bonds prefer bonds with longer maturities. b. Buyers of bonds consider bonds of different maturities to be perfect substitutes. c. Buyers of bonds prefer bonds with shorter maturities. d. Markets for different maturity bonds are completely separate. 12. Yield curves show: a. The relationship between liquidity and bond interest rates (yields). b. The relationship between risk and bond interest rates (yields). c. The relationship between bond interest rates (yields) and bond prices. d. The relationship between time to maturity and bond interest rates (yields). 13. Municipal bonds generally have lower interest rates than U.S. Government bonds because: a. They have less risk. b. They are more liquid. c. They never mature. d. They are exempt from Federal taxes. 14. If the bond is selling above the face value than it is called: a. Discount b. Compound c. Premium d. None of the given options 15. Zero- Coupon bonds are sold at a price: a. Equal t their face value b. Below their face value c. Above their face value d. None of the given options 16. According to the ________ effect, an increase in the money supply lowers the interest rate. a. Price-level b. Liquidity c. Income d. Expected-inflation 17. The real interest rate is: a. The nominal rate plus the expected inflation rate b. The nominal interest rate/the CPI c. The product of the nominal rate and the CPI d. The nominal rate minus the expected inflation rate 18. For a coupon bond, the current yield is calculated as: a. Coupon Payment/Price b. The current yield is the same as the coupon rate. c. Coupon Payment/Face Value d. Coupon Payment/((Price + Face Value)/2) 19. Which of the following is a use for commercial bank funds? a. Loans b. Securities c. Reserves d. All of the given options 20. Financial intermediaries: a. Channel funds from savers to borrowers b. Greatly enhance economic efficiency c. Have been a source of many financial innovations d. Have done all of the above

When is the right time to buy a bond or bond fund? Before interest rates go down or up? I think interest rates are going to go down at the next meeting and I think stock prices are too high. So I want to buy a bond fund or bond ETF. It would really help me if the interest rates went down wouldnt it? Thanks:) Should I buy now or later?

If stocks are falling why aren't bank interest rates or bonds rising?

how economic conditions affect interest rates and bond yields? 1.Over the past six months, U.S. interest rate have declined, and Canadian interest rate have increased, 2.The U.S. economy has weakened over the past year , and the Canadian economy has improved, 3.The U.S savings rate (proportion of income saved) is expected to decrease slightly over the next year. While the Canadian savings rate will remain stable. 4.The U.S. and Canadian central banks are not expected to implement any policy changes that would have a significant impact on interest rates. 5.You expect the U.S. economy to strengthen considerably over the next year but still be weaker than it was two year ago. You expect the Canadian economy to remain stable. 6.You expect the U.S. annual budget deficit to increase slightly from last year but be significantly less than the average annual budget deficit over the past five years. You expect the Canadian budget deficit to be about the same as last year. 7.You expect the U.S. inflation rate to slightly, but still remain below the relatively high levels of two years ago. You expect the Canadian inflation rate to decline. 8.Based on some events last week, most economists and investors around the world (including yourself) expect the dollar to weaken against the Canadian dollar and other foreign currencies over the next year. This expectation was already accounted for in your forecasts of inflation and economic growth. 9.The yield curve in the United States current exhibits a consistent downward slope. The yield curve in Canada currently exhibits an upward slope. You believe that the liquidity premium on securities is quite small. Questions 1.Using the information available to you, forecast the direction of U.S interest rates. 2.Using the information available to you, forecast the direction of Canadian interest rates. 3.Assume that the perceived risk of corporations in the United States is expected to increase. Explain how the yield of newly issued U.S corporate bonds will change to a different degree that the yield of newly issued U.S treasury bonds.

What determines the interest rate on I bonds? I am thinking about purchasing my new great niece an I bond for her birthday for $100. I know the interest rate now until May is like 4.7 %. What determines the interest rate in the I bond? Does the Feds raising and lowering the interest rate have any affect on the return? This I bond I plan to purchase will be for her future education.

How do I find the Net Income using Earning Before Bonds Interest and Income Tax? I need help to find the net income with the following information provided. Earning Before Bonds Interest and Income Tax - $250,000 Income Tax Rate - 20% Interest Rate of Bonds - 15% Thank you in advance for helping me. Please show me how you got the answer as well.

Interest rates vs bond prices? I dont understand why when interest rates increase, bond prices decrease, shouldn't higher interest rates encourage investment since there is more ROI? which in turn will make bonds more desireable and more expensive?

Do you know the interest rate on May I bonds? Thought I would purchase one and just wondered. Do you know the interest rate on I bonds?

How are bond prices, interest rates, stocks generally related? In what circumstances do they go up/down and how are they related (generally)?