On Friday, September 20, 2013 11:56:40 PM UTC-4, Ignoramus3517 wrote:

The interest rate is the opposite (inverse) of price, when we talk

about bonds. The lower the interest rate, the higher the price of

bonds.



For example, to simplify, a bond that promises to pay $100 in a year,

would cost $91 if the interest rate is 10%, and $99 if the interest

rate is 1%. The 1% bond is higher priced.



i

You are right, I do not know what I was thinking, or rather not thinking. I really know better.

Dan