Relation between yields and interest rates
25 Jun 2019 If current interest rates were to rise, giving newly issued bonds a yield of 10%, then the zero-coupon bond yielding 5.26% would not only be less If interest rates decline, however, bond prices of existing the relationship between price and yield remains constant: The 30 Aug 2013 To explain the relationship between bond prices and bond yields, let's use an example. First, let's disregard today's artificially-induced interest