Summary of Bond Market Interest Rates

Current interest rates are one of the key determinants of bond prices on the secondary market. Lower interest rates can mean higher bond prices on the secondary market. Prudent investors buy and sell bonds based on current interest rates, bond coupon rates, and maturity. As a savvy investor, you need to understand how changes to interest rates affect bond prices. You also need to understand the relationships of bond yields, maturities, and durations to interest rates.