Cambridge Associates, LLC Interview Question: Why do bond prices and bond y... | Glassdoor

Interview Question

Investment Performance Associate Interview Arlington, VA

Why do bond prices and bond yields move inversely?

Answer

Interview Answer

1 Answer

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Because bond price is a discounted value of future cashflows. If yield or discount rate decreases, the present value will increase, which means that price will increase

Anonymous on Jun 5, 2015

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