Wednesday, February 17, 2016

Explain the connection between the price of a financial asset and its interest rate.



Explain the connection between the price of a financial asset and its interest rate.

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1 comment:

  1. ANSWER
    There is an inverse relationship between the price of a financial asset and its interest rate. When the price of a financial asset rises, its interest rate falls. Similarly, when the interest rate on an asset falls, the price of the asset rises.

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