Terms
15 new/unreviewed 15 total
Term
What happens to the Present Value (PV) when the interest rate goes up?
Definition
PV goes down.
New/Unreviewed
Term
What happens to the Future Value (FV) when the interest rate goes up?
Definition
FV increases because your money grows faster.
New/Unreviewed
Term
What’s the relationship between bond prices and interest rates?
Definition
Inverse — when rates rise, bond prices fall.
New/Unreviewed
Practice Tests
0 total
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