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bond market

bond market in Culture

bond market definition

The market in which bonds are traded before their maturity. If interest rates decline after a bond has been issued, the value of bonds already issued with higher rates of interest will rise, and hence the bond market is said to be “up.” A rise in interest rates will lower the value of bonds issued with lower rates of interest and send the bond market “down.”

The New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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