Ep. 264 Is the Fed Bailing Out the Banks
Bob Murphy Show
00:00
The Effect of Interest Rates on the Market Price of an Asset
If interest rates doubled from 5% to 10%, the market price of that asset would get cut in half. So if what this asset is, is a thing that entitles you to $1,000 a year, the most you would pay is $10,000. If you had to pay more for that, you'd be losing money. You'd make better by investing that elsewhere.
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