Economy

Interest rates

Slide an example rate. A toy perpetuity bond (price ≈ coupon ÷ rate) moves the other way. A $10,000 loan’s annual interest moves with the rate.

5.0%
Toy math. Not a Fed announcement and not a quote on a real bond.

Example annual coupon locked at $50.00. Example loan: $10,000.

Two opposite moves

Toy bond price

$0.00

Annual interest on $10k

$0.00

Bond price
Borrowing cost

Takeaway: When rates rise, existing bond prices fall and new borrowing costs more — toy math, real idea.

This is educational, not advice. Example rates and taxes are illustrations. Real accounts, markets, and tax rules can look different — sometimes a lot. No number on this page is a recommendation.

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