Good Bonds Inverse Relationship Better Ideas
Mid Bonds Inverse Relationship Ideas . Or, in other words, equity prices have an inverse relationship with bond yields. Bonds have lower risk while stocks are riskier and both compete for investors. PPT Bond Prices and Yields PowerPoint Presentation ID3384472 from www.slideserve.com The price of the bond is tied to two things. At first glance, the inverse relationship between interest rates and bond prices seems somewhat illogical, but upon closer examination, it makes good sense. Essentially, bonds and interest rates have an inverse relationship.