other things being equal i.e suppose interest rate doesn't increase.....what happens when inflation soars to the bond price?
i suppose its price should decrease right? coz bond yields are inflation adjusted according to the duration
but before i was so preoccupied that i was thinking its price increases as purchasing power of the money decreases or demand is high....but again realized that bonds yields include inflation as well.
nevermind
i just want to make sure if i am right
i suppose its price should decrease right? coz bond yields are inflation adjusted according to the duration
but before i was so preoccupied that i was thinking its price increases as purchasing power of the money decreases or demand is high....but again realized that bonds yields include inflation as well.
nevermind
i just want to make sure if i am right