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  2. Analysis-Corporate hedging to save debt costs may have ... - AOL

    www.aol.com/news/analysis-corporate-hedging-save...

    In a sign pre-issuance hedging activity was having an impact, the yield on the benchmark 10-year Treasury bond climbed to 4.8% on Jan. 13 from 4.38% on Dec. 17, coinciding with corporate issuance ...

  3. Why do bond prices move up and down? 3 key reasons - AOL

    www.aol.com/finance/why-bond-prices-move-down...

    A move in the direction of overall interest rates, such as the Federal Reserve’s decision to cut rates, will affect bond prices. The price of bonds moves inversely to the direction of prevailing ...

  4. The Relationship Between Bond Prices and Interest Rates - AOL

    www.aol.com/finance/relationship-between-bond...

    Bond prices and interest rates are closely related and can both be used to forecast economic activity, so investors should at least be aware of the basics: how interest rates affect bond prices ...

  5. Interest rate future - Wikipedia

    en.wikipedia.org/wiki/Interest_rate_future

    Interest rate futures are used to hedge against the risk that interest rates will move in an adverse direction, causing a cost to the company. For example, borrowers face the risk of interest rates rising. Futures use the inverse relationship between interest rates and bond prices to hedge against the risk of rising interest rates.

  6. Bond convexity - Wikipedia

    en.wikipedia.org/wiki/Bond_convexity

    As interest rates change, the price is not likely to change linearly, but instead it would change over some curved function of interest rates. The more curved the price function of the bond is, the more inaccurate duration is as a measure of the interest rate sensitivity. [2] Convexity is a measure of the curvature or 2nd derivative of how the ...

  7. Bond market - Wikipedia

    en.wikipedia.org/wiki/Bond_market

    When interest rates increase, the value of existing bonds falls, since new issues pay a higher yield. Likewise, when interest rates decrease, the value of existing bonds rises, since new issues pay a lower yield. This is the fundamental concept of bond market volatility—changes in bond prices are inverse to changes in interest rates.

  8. Corporate bonds: Here are the big risks and rewards - AOL

    www.aol.com/finance/corporate-bonds-big-risks...

    Lower minimum investment: A typical bond has a face value of $1,000, but with a bond ETF you can buy a collection of bonds for the price of one share – which may cost as little as $10 – or ...

  9. Yield (finance) - Wikipedia

    en.wikipedia.org/wiki/Yield_(finance)

    The yield on a fixed income security is inversely related to financial market interest rates. If market rates rise, for example due to inflation or a change in the economy, the price of a bond or note falls, driving its yield higher to maintain parity with market rates. [16] Conversely, if market rates decline, then the price of the bond should ...