Re:Ask HN: How is the SVB situation affecting your startup?
by lordnacho on Friday March 10, 2023 @11:46AM
(#35096896)
Looks I said high when I meant low. For people who aren't in finance, if rates go up, bond prices go down: an instrument that pays 10% a year on 100 is worth less when there are new instruments paying 15% a year on 100. For the rates to match the original 100 is now lower, because that's the only way you get the same amount of interest per dollar spent buying the bond.
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