1 The decrease of market interest rate means that the interest rate of new debt will also decrease. Compared with these old bonds that have been listed, the yield of the old bonds is relatively high, that is, the price of the old bonds is underestimated, so at this time, bonds will be bought to obtain the income higher than the market interest rate, so the price of bonds will rise. When the bond price rises, the yield will decrease, and the price and yield will reach equilibrium again, matching the market interest rate.
2. Bond price is inversely proportional to bond yield, and market interest rate will affect bond yield.
3. Market interest rate (market interest rate) is a true reflection of the borrowing cost of market funds, and the indicators that can reflect the short-term market interest rate in time are interbank lending rate and national debt repurchase rate. The interest rate of newly issued bonds is generally designed according to the market benchmark interest rate at that time. Generally speaking, the rise of market interest rate will cause the price of fixed-income products of bonds to fall, the stock price to fall, the real estate market and the foreign exchange market to fall, but the savings income will increase.
4. Bond value refers to the present value of cash inflow that investors expect when investing in bonds. The cash inflow of bonds mainly includes the interest and principal recovered at maturity or the cash obtained when selling. When the purchase price of a bond is lower than the value of the bond, it is worth buying.