Stocks and bonds are traded in separate markets, and interest rates are set in bond (debt) markets. Why then does there seem to be a direct relationship between the movements of stock prices and interest rates?
Stocks and bonds are traded in separate markets, and interest rates are set in bond (debt) markets. Why then does there seem to be a direct relationship between the movements of stock prices and interest rates?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Stocks and bonds are traded in separate markets, and interest rates are set in bond (debt) markets. Why then does there seem to be a direct relationship between the movements of stock prices and interest rates?
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