The interest rates do not change after a bond is issued. If you intend to sell a bond before it matures the selling price can change if the interest rate on new bonds is higher or lower than the old bonds. As an example if the new bonds interest rate is lower the value of the old bonds will go up.
Thursday, April 16, 2009
What happens to exisitng treasury bond prices when the government decides to issue new treasury bonds?
What happens to exisitng bond prices when the government decides to issue new treasury bonds?
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