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Bond Prices vs. Yields: The Inverse Teeter-Totter Explained

Bond Prices vs. Yields: The Inverse Teeter-Totter Explained

When market interest rates increase, existing bonds paying lower coupons must drop in price so their effective yield matches newly issued bonds.

AL

Alex Morgan, CFA

Financial Contributor & Analyst

Financial writer and researcher specializing in banking products, consumer credit, and long-term investing strategy. Verified by the FinBank Editorial Board.

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