WBTM on Nostr: Imagine you lent a friend $100 at 5% interest because that was the best deal in town. ...
Imagine you lent a friend $100 at 5% interest because that was the best deal in town. Suddenly, everyone else starts offering $100 loans but at 10% interest. Your deal doesn't look so hot anymore, right? Your loan's value drops because others can now get a better return on their money elsewhere. This is exactly what happens with bonds when interest rates go up. The price of existing bonds falls because new bonds come with higher yields, making them more attractive. It's like your money's charm fades as newer, shinier deals appear. #InterestRates #BondMarket #InvestmentBasics Let's chat: Ever felt the sting of a better deal coming around right after you've committed? 😅💸 #FinanceFOMO . .
Published at
2024-11-19 15:33:40Event JSON
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"content": "Imagine you lent a friend $100 at 5% interest because that was the best deal in town. Suddenly, everyone else starts offering $100 loans but at 10% interest. Your deal doesn't look so hot anymore, right? Your loan's value drops because others can now get a better return on their money elsewhere. This is exactly what happens with bonds when interest rates go up. The price of existing bonds falls because new bonds come with higher yields, making them more attractive. It's like your money's charm fades as newer, shinier deals appear. #InterestRates #BondMarket #InvestmentBasics Let's chat: Ever felt the sting of a better deal coming around right after you've committed? 😅💸 #FinanceFOMO . .",
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