Interest Rates and Bond Prices: Why They Move in Opposite Directions

Interest rates and bond prices move in opposite directions, and most people have heard that, but far fewer know why. In this episode, Ryan uses a simple example of a 3% bond versus a newly issued 6% bond to show exactly how rising rates make existing bonds less attractive and push their market price down.The bigger takeaway is what this means for you as a holder: if you bought a bond and plan to hold it to maturity, those paper price swings do not actually affect you. You still collect your interest payments and get your full principal back at the end. If the bond math has ever felt confusing, this episode makes the logic click.Find "Your Fiscal Physical" the book on AmazonIf you have suggestions or feedback, please email us at: [email protected], as always, Stay the Course!