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Introduction to Bond Market Interest Rates

This tutorial will teach you what happens to bond prices when current interest rates are higher or lower than a bond's coupon rate.

What you will learn

  • Interest Rates and Bond Pricing
  • Bulls and Bears in the Bond Market
  • Bond Yields and Market Pricing
  • Bond Maturities and Interest Rates
  • Duration, Interest, and Maturity

What do you know?

Introduction to Bond Market Interest Rates

Bonds are very sensitive to changes in interest rates. If you plan to buy and sell bonds on the secondary market, you will need to watch interest rates very carefully. This is because interest rates, more than anything else, determine the prices of bonds. As an educated investor, you need to understand bond market interest rates and how they affect bonds prices of both original issue and secondary market bonds.