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Wolfram Alpha is a good source for this type of information. https://www.wolframalpha.com


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Bonds are sold ('offered') with a defined interest rate, which doesn't change afterwards. Imagine you bought a 1000$ - 3% bond, and the market interest goes down below that - your bond is suddenly better than other investments on the market, so demand goes up, and people pay you more than the 1000$ to have it. On the other hand, if market interest goes up, ...


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The price of a bond is tied to the interest rate (yield) of that bond by a simple formula, so the effect of one on the other is fully predictable. The relation between prices and/or yields of different bonds -- e.g., with different maturities or credit risks -- is much more complex and can involve secondary effects of the kind you mention. These are measured ...


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If rates are increasing and bond prices are declining, that makes older bonds less attractive because newer bonds offer a higher rate. In order to be competitive, the price of the older bonds must decline otherwise no one would buy them. Conversely, if rates are declining, investors/traders are wiling to pay more for the older bonds because they offer a ...


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This is a follow-on to @SimonB's excellent answer. People have been worried about hyperinflation ever since the aggressive QE (Quantitative Easing, aka buying government bonds to increase the money supply) of 11 years ago. But, as @SimonB mentioned, it hasn't happened. What is the best thing to do in my situation to at least prevent my fund from being ...


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Base rates have been low for many years now, and high inflation hasn't happened yet. The central banks are monitoring inflation rates, and will adjust the base rates if necessary. To a large extent, the point of keeping interest rates low is to discourage people from hoarding large amounts of money in cash savings. If the interest rate is below the rate ...


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Fixed Deposits in an AA+ bank are relatively good for safety and liquidity. You can always break it and lose your interest if you need the money. Your capital is mostly safe. I don't think an index fund has a similar purpose. If you were to need money urgently in the midst of a recession, you would encounter a huge loss if you were forced to sell your fund. ...


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