I am very confused because I thought if interest rates go up, that means bonds now become valuable? What makes a bonds index fund like BND go down? Arent bonds just loans against the government or corporations? Shouldnt that be a good thing all the time? Shouldnt a ticker like BND always be green?? I am so confused!! Thank you in advance for reading and answering my stupid question lol
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If someone offered you two bonds, one issued yesterday for 5% and one issued today at 4%, but the purchase price was the same, which one would you pick? One is obviously more valuable than the other one.
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