Sentences with phrase «inverse change in interest rates»
It measures the percentage change in bond prices due to a one - time across - the - board 1 % inverse change in interest rates.
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Returns are primarily dependent on the change in interest rates as there is an inverse relationship between bond prices and interest rates.
There is an inverse relationship between preferred prices and changes in interest rates.
With these and other bonds, market prices move inverse to interest rate changes: Rising interest rates will result in falling bond prices.
As a bondholder, the most important concept to be aware of is that the price of a bond has an inverse relationship to changes in the market interest rates.