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To: browser who wrote (996)	8/22/1998 8:50:00 PM
From: stockycd	Read Replies (1) \| Respond to of 1267

Highs in price not in yield. If you trade bonds, you want the price to go higher and the yield to go lower. CD

To: browser who wrote (996)	8/23/1998 12:31:00 PM
From: Claud B	Read Replies (3) \| Respond to of 1267

Robert, There is an inverse relationship between price and yield. As prices rise, yields decline. Perhaps you can better understand it as it pertains to a stock. For instance if a stock is selling at $20 and pays a dividend of $2 then the yield is 10%. If that stock rises to $25 and still pays $2 in dividends, the yield falls to 8%. (To do this yourself, just divide $2.00 by $25.00) See what I mean? Since the interest rate on a bond is fixed, as the price of the bond rises, the yield declines. Hope that helps. Claud