The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: Joseph Silent who wrote (43957)	1/9/2012 7:42:10 PM
From: Real Man	Read Replies (2) of 71475

Ah, it's simple. I meant bond price in that post. Price drops, rates rise. Rates drop, price rises. Bond price is Bprice = P Exp (- R T), where P is principal, T is time to maturity, R is interest rate for time T, if all coupons (payments) are stripped, and it pays nothing. If it pays something, you have to sum up all payments with appropriate Exp ( - R t) factors to get the price and the sum gets a bit complicated, but the relationship is the same. For zero coupon bond the inverse relationship is most transparent -g-

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