Tag Archives: bonds

Impact of interest rates on a bond's price that will be purchased from original institution & held to maturity?

I plan to buy several bonds from the original institution and also plan to hold the bond to maturity. I understand the inverse relationship between bond prices and interest rate, but since I plan to buy & hold bond to … Continue reading

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Why, with higher interest rates will the dollar appreciate?

If interest rates rise in the United States, why do foreign investors storm the market, making the dollar appreciate? What makes a higher interest make foreign investors by US bonds? What is a bond? Just curious.

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What happens to my bonds if interest rates go up?

I own different types of bonds, if price falls then rates go up, so is it good to hold for interest rate payments or sell if prices fall?

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Where does the Fed get the money that it loans to banks through the discount window?

Does the Fed just print the money? Also, when it was infusing money into the system by buying some kind of securities or bonds, where was that money coming from? Can someone explain the recent actions of the Fed. Thank … Continue reading

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How do loans increase the money supply?

I understand how interactions between banks and the Fed can increase the money supply through the sale/purchase of bonds. How exactly do loans from banks result in "new money"?

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If inflation is growing and interest rates are decreasing, what will happen to bond prices?

This seems to be the current situation; usually interest rates go up with inflation (which would make bond prices go down), but now we have substantial inflation, and interest rates are heading south. Help! Are bonds safe?

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