If you are wondering how the market price of a bond will increase based on the yield, the answer is that the market will be pricing in the same amount of risk every time.
The reason this goes on so long is because the market is willing to bet they are going to get a higher return from risk than they believe. To make matters worse, the market will often be wrong about the yield. The market will typically make the assumption that if you have a high enough expected rate of return, you will also have a high enough risk. To get the market to make that assumption, they will try to game the odds and increase the risk.
The reason I say this is because we have such a high rate of interest between 10-years, 30-years, and 60-years (the three bond maturities) that we can’t let the market get away with using those expected returns.
The market will typically make the assumption that if you have a high enough expected rate of return, you will also have a high enough risk. To get the market to make that assumption, they will try to game the odds and increase the risk.
These are the main reasons why we have a market for the bonds.
The first reason is that there is a high rate of return based on the risk of inflation. This means that for your bond to be worth more, you have to be willing to pay more for it. The second reason is that it is better to have a high expected rate of return when the risk is high because we can pay more up front.
We don’t actually think that the market is wrong. Instead, we have a tendency to assume that every market is wrong by default and that it’s a good idea to play the odds, and thus we believe that a bond backed by a government program is a good idea.
Bonds are a good money-maker because we can pay more in one spot than we would in the long run by paying for it later. But it is also the case that we can pay less up front for our bonds because we can expect a high rate of inflation, which means they are a little less risky. To see if this is true, you can look at bond prices and inflation rates, and see what the market values them at.
The market price is one of the most important factors in a bond’s price. But the market value of a bond varies dramatically when we think about the price of a bond, especially when we have to make sure that all the buyers know exactly what we have. If you want to buy something you can’t get much more than a single dollar, and if you want to buy something you can’t get much more than an ounce.