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When interest rates go up, prices of fixed interest bonds – (i) Go up (ii) Go down (iii) Remain unchanged

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/10/03
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Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

(ii)    Go down

kais Ben abderrahmen
by kais Ben abderrahmen , Chargé D’affaires (H/F) , Banque Zitouna

in case of a rise of interest rates, the prise of fixed assets will go down. Cash flows will be discounted at a higher rate.

IBRAHIM MOHAMMED - CMA
by IBRAHIM MOHAMMED - CMA , Senior Accountant , Ajal Finance & Investment K.S.C.C

The price of fixed interest goes down because The bond is sold at discount.

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