Bond Price, Yield and Interest-Rate Relationship

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Bond Price, Yield and Interest-Rate Relationship - Article

Bond price, coupon, yield, and market interest rates are closely connected. The most important relationship is **inverse: when market yields rise, existing bond prices generally fall, and when yields fall, bond prices rise**. This article explains par, premium and discount pricing, coupon yield, current yield, YTM, maturity effects, interest-rate sensitivity, and practical treasury implications for CAIIB BFM learners.

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