The prices of high-coupon bonds tend to be less sensitive to a given change in interest rates than?
350748
True.  The price elasticity on high-coupon bonds is less, everything else equal, because for the low-coupon bond, the payment is concentrated in the principle at the end.
385604
the rates are going to be the same, but the cutoffs will increase slightly due to inflation.\n\nHowever, these won't be announced for another few months.
707425
basically there are 4 factors that determine the value of a bond.\n1.  Its credit rating.  If the credit rating changes downward the price of the bond will drop acordingly as Ford and GM bond holders discovered last year.  Bonds that were selling about about face value suddendly dropped to 75% of face. \n\n2.  Length of maturity.  As a bond approches maturity, its value also approches face value.\n\n3.  Length of time to call.  A bond with an unusually high coupon rate that is selling at a premium will drop towards par value or the call value as it approaches the call date.\n\n4.  Last but most importantly the coupon value as it relates to current interest rates. A bond with a 6% coupon given that current interest rates are at about 5% will sell at a little less than $1200 depending on time to call or maturity, a 20% premium.  Conversely, a bond with a 4% coupon given that current nterest rates are at about 5% will sell at a little more than $800 depending on time to call or maturity, a 20% discount.
1087985
With higher interest rates, people don't buy as many houses and cars. Businesses don't construct as many new factories. So, there's not as much need for oil, concrete, steel, labor, etc. Lower demand means lower prices. Or, at least, prices that don't rise as much.
681628
Senior notes probably have a lower coupon rate because they have less "default risk" so to speak.  If the company defaults, they are more likely to recover assets so the senior notes get discounted slightly.  The junior notes would likely get not as much so they have a highe risk and pay a higher rate.
359566
They can change interest rates and buy/sell bonds on the open market.  I don't remember the last.  They probably use bonds the most often because the government uses that to finance itself.
1037621
There is a inverse relationship. When interest rates go up, the stock markets go down. When interest rates go down, stock market go up.\nThere is a old saying "Don't fight the Fed". When the Fed increase its interest rates twice, the stock market would fall.\nAs the interest rates rise, investor would seek safer return in T-bill, bonds, and saving account in banks.\nAs the interest rates fall, investor would to seeking higher return in Stocks rather than invest in low rates of returns in bonds.
1185458
On a net basis, no one.  In real terms, higher interest rates are a result of inflation which is an asset transfer usually from the poor to the rich.  However, there can be no profit if rates rise and no real transfer.\n\nNow, there are individuals and organizations who personally benefit and others who lose.  On average, everything is neutral.  Anyone holding cash, variable rate instruments or short long dated fixed rate instruments is ahead.  Anyone fully invested, holding fixed rate instruments or short floating rate securities is losing.  Commodity prices tend to fall as rates rise, existing owners tend to lose, but consumers then buy things at lower costs and win an equal amount (or approximately).
764508
Depends on your investments. Stocks or bonds? Fixed or variable rates/returns? Example, if you're investing in a fixed rate @ 3% and rates go up to 5%...you'll make less because your fixed rate is 3%. If rates go down to 2%, you'll make more.
809503
The yields on government bnds fluctuate almost on a daily basis and especially during monthly interest rate revisions. Therefore, the same bond bought at different times would yield a different return. \n\nHope this helps.\n\n\nhttp://www.mastersoequity.com\n\n\n.
396889
Are you investing into a company that is highly leveraged?  Meaning does it have a lot of debt?  If it does, interest rates are important.  \nIn regards with consumer sentiment, there are certain companies that are less sensitive to consumer sentiment.  For example food industry is really not impacted by consumer sentiment because we all got to eat right? =)  Electronics makers are very susceptible to consumer sentiment because you will buy food before you buy that new iPod, though at the rate this country (USA) is going things may change soon.\n\nAleks
581029
i would think there would be a few more interest rate increases. The housing market is most likely to cool in the coming months.
645600
True.  If the Aus$ is going to go down in value, then Austrailia needs to be pay higher interest rates to make up for the loss in value of its currency.
685650
Based on historical evidence, bond prices are less volatile than the prices of other assets like stocks, options, etc.  In other words, while bond prices do move around, as you note, they don't move around as much as stocks.  Also, if you hold a bond to maturity and it doesn't default--most bonds don't default--you will get all the principal and interest you bargained for when you bought the bond.  You can't say that with certainty for stocks, real estate and other investments.
1174477
If interest rates are expected to go up, bonds will go down, so no bonds would be better than either short or long bonds. \n\nHaving said that, if you must establish a position, short-term bonds would be a better investment because they will mature sooner, at which time they will be redeemed for their face value. \n\nLong-term bonds, on the other hand, will fall in price and remain there until either rates decline once again or the bonds mature.
377248
Tourists comprise a very small amount of the Foreign Exchange market.  Shifts in tourist patterns have much less effect on currency prices than demand by institutional traders.  Interest rates, fiscal deficits, trade deficits, and the strength of the economy that issues the currency tend to be the factors affect currency values most (for those currencies that are allowed to float)
662028
one's got more realistic prices