Bonds & Interest RatesInterest Rates
The Bond Seesaw
When rates rise, existing bond prices fall
A US government bond traded at $101 in 2020 and near $44 three years later, with every payment made. What happened?
You'll find out
- Why a safe bond can lose its price
- What a buyer pays for an old bond
- When the seesaw doesn't matter
Why it matters
Every bond, fund and bank holds IOUs whose prices ride on rates. The seesaw explains headlines you'll hear for life.
Play this lesson
Free to play in your browser or on iPhone