NerdWallet- October 8, 2015
This article discusses some bond basics, and the role of bonds in a portfolio. In it David Schneider explains the relationship between bond prices and interest rates, saying “Let’s pretend you own a bond you paid $1,000 for that pays 5% interest.
If tomorrow rates go up to 7%, no one is going to want to pay $1,000 for a bond that only pays $50 a year, so the price of the bond drops.” Read More: NerdWallet
