What Happens if the 10-year Treasury goes to Zero? The Decline of Interest Rates & The Rise in Bond Prices
Over the last thirty years, the trend of interest rates has been declining. As interest rates decline, the price of bonds that consumers can pay goes up. The Inverse Relationship between Bonds and Interest Rates I will give you a quick example. If interest rates are 5% and bonds are $100, say the interest rate decreases […]