INTEREST RATES AND BOND PRICES (СТА

INTEREST RATES AND BOND PRICES (СТАВКА ПРОЦЕНТА И ЦЕНЫ НА ОБЛИГАЦИИ)
The change in interest rates has important implications for the stockmarket prices of bonds, which pay a fixed rate of interest: fixed-interest securities, of which the traditional gilt-edged securities issued by the government arc the most familiar though companies also issue fixed-interest bonds. It works like this.
Gilt-edged securities are a form of IOU (I owe you) or promissory note issued by the government when it needs to borrow money. The government undertakes to pay so much a year in interest to the people who put up the money and who get the IOU in exchange. Normally the government agrees to redeem the stock at some date in the future, but to illustrate the interest rate mechanism it is easiest initially to take an irredeemable or undated stock, which does not have to be repaid.
The original investors who lend the money to the government do not have to hold on to the lOUs. They can sell them to other investors, who then become entitled to receive the interest from the government. Suppose the government needs to borrow money at a time when investors would expect an 11% yield on a gilt-edged security. It oners $11 a year interest for every $100 it borrows. The investor is prepared to pay $100 for the right to receive $11 a year interest, because this represents an 11% return on his outlay.
Then suppose that interest rates rise to a point where an investor would expect a 12,5% return if he bought a gilt-edged security. He will no longer pay $100 for the right to $11 a year in income. He will only be prepared to pay a price that gives him a 12,5% return on his outlay. The "right" price in this case is $88, because if he pays only $88 to receive $11 a year in income, he is getting a 12,5% return on his investment. So in the stockmarket the price of the gilt-edged security that pays $11 a year interest will have to fall to $88 before investors are prepared to buy it. The original investor who paid $100 thus sees the value of his investment fall because of the rise in interest rates. Conversely, the value of his investment would have risen if interest rates had fallen.
To summarize: If interest rates on securities go down, bond prices or prices for securities go up, and vise versa.

Результаты (английский) 1:

INTEREST RATES AND BOND PRICES (INTEREST RATE AND BOND PRICES)The change in interest rates has important implications for the stockmarket prices of bonds, which pay a fixed rate of interest: fixed-interest securities, of which the traditional gilt-edged securities issued by the government of the arc the most familiar though companies also issue fixed-interest bonds. It works like this.Gilt-edged securities are a form of IOU (I owe you) or promissory note issued by the government when it needs to borrow money. The government undertakes to pay so much a year in interest to the people who put up the money and who get the IOU in exchange. Normally the government agrees to redeem the stock at some date in the future, but to illustrate the interest rate mechanism it is easiest to initially take an irredeemable or undated stock, which does not have to be a benchmark.The original investors who lend the money to the government do not have to hold on to the lOUs. They can sell them to other investors, who then become entitled to receive the interest from the government. Suppose the government needs to borrow money at a time when investors would expect an 11% yield on a gilt-edged security. It oners $ 11 a year interest for every $ 100 it borrows. The investor is prepared to pay $ 100 for the right to receive $ 11 a year interest, because this represents an 11% return on his outlay.Then suppose that interest rates rise to a point where an investor would expect a 12.5% return if he bought a gilt-edged security. He will no longer pay $ 100 for the right to $ 11 a year in income. He will only be prepared to pay a price that gives him a 12.5 percent return on his outlay. The "right" price in this case is $ 88, because if he pays only $ 88 to receive $ 11 a year in income, he is getting a 12.5 percent return on his investment. So in the stockmarket is the price of the gilt-edged security that pays $ 11 a year interest will have to fall to $ 88 before investors are prepared to buy it. The original investor who paid $ 100 thus sees the value of his investment fall because of the rise in interest rates. Conversely, the value of his investment would have risen if interest rates had fallen.To summarize: If interest rates on securities go down, bond prices or prices for securities go up, and vise versa.

Результаты (английский) 2:

INTEREST RATES AND BOND PRICES (interest rate and bond prices)
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Then statement suppose That Interest information Rates-rise to a point where clause an investor Would the expect a 12.5% ​​return statement the if he bought a gilt-edged security. He will no longer pay $ 100 for the right to $ 11 a year in income. He will only be prepared to pay a price that gives him a 12,5% return on his outlay. The "right" price in this case is $ 88, because if he pays only $ 88 to receive $ 11 a year in income, he is getting a 12,5% return on his investment. So in the stockmarket the price of the gilt-edged security that pays $ 11 a year interest will have to fall to $ 88 before investors are prepared to buy it. The original investor who paid $ 100 thus sees the value of his investment fall because of the rise in interest rates. Conversely, the investment of value of a His Risen Would have the if information Rates Interest HAD Fallen.
The To summarize: the If information Rates Interest on Securities! Go down, bond prices or prices for Securities up closeup! Go, and vise versa.

Результаты (английский) 3:

INTEREST RATES and BOND PRICES (interest rate and bond prices)the change in interest rates has important implications for the stockmarket prices of bonds, which pay a fixed rate of interest: fixed - interest securities, of which the traditional shall - edged securities issued by the government is the most familiar, but companies also issue fixed - interest bonds. it works like this.Gilt - edged securities are a form of IOU (i owe you) or promissory note issued by the government when it needs to borrow money. the government undertakes to pay so much, a year in interest to the people who put up the money and who get the IOU in exchange. normally the government agrees to redeem the stock at some date in the future, but to illustrate the interest rate mechanism it is easiest natives to take an irredeemable or undated stock, which does not have to be repaid.the original investors who make the money to the government do not have to hold on to the lOUs. they can sell them to other investors, who then become entitled to receive the interest from the government. Suppose the government needs to borrow money at a time when investors would expect an 11% yield on a shall - edged security. it oners $11 a year interest for every $100 that borrows. the investor is prepared to pay $100 for the right to receive $11 a year interest, because this represents an 11 per cent return on his outlay.then suppose that interest rates rise to a point where an investor would expect a 12.5% return if he close a shall - edged security. i will no longer pay $100 for the right to $11 a year in income. i will only be prepared to pay a price that gives him a 12.5 percent return on his outlay. the "right" price in this case is $88, because if he pays only $88 to receive $11 a year in income, he is getting a 12.5% return on his investment. so in the stockmarket the price of the security that pays edged shall - $11 a year interest will have to fall to $88 before investors are prepared to buy it. the original investor who paid $100 and sees the value of his investment fall because of the rise in interest rates. Conversely, the value of the investment would have risen if interest rates had fallen.to summarize: if interest rates on securities go down, bond prices or prices for securities go up, and vise versa.