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    yathink103's Avatar
    yathink103 Posts: 27, Reputation: 2
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    #1

    May 15, 2007, 08:39 PM
    Treasury bonds
    Why do treasury bonds decrease when the interest rates are up?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    May 16, 2007, 08:39 AM
    Think about how much you would be willing to pay for a bond that has a face value of $100 and that yields, say, 4% if (a) you could get 5% by putting monet onto a savings account the bank, or (b) you can only get 3% from the bank?
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