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.
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.