The Intricate Dance of Bonds and Interest Rates

Adrian J. Mayer
3 min readMar 17, 2023
Photo by David Hofmann on Unsplash

The bond market, a crucial component of the global financial system, offers investors an opportunity to diversify their portfolios and mitigate risk. However, understanding the relationship between bond prices and interest rates can be a challenge for many. In this article, we will demystify this complex dynamic and explore why bond prices fall when interest rates rise, and vice versa.

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Adrian J. Mayer

I hold 5 college degrees including a BBA in Finance, MBA, DBA, and post-doc in Applied Statistics. I work for a non-profit in Orlando, FL as a business analyst.