BIOMOLECULES AND ENZYMES

Detailed explanation-1: -The idea is that, since higher interest rates make fixed-income investments like bonds more attractive, money will flow out of gold and into high-yielding investments as rates rise. However, historical data shows no significant correlation between rising interest rates and falling gold prices.

Detailed explanation-2: -Essentially, the price of a bond goes up and down depending on the value of the income provided by its coupon payments relative to broader interest rates. If prevailing interest rates increase above the bond’s coupon rate, the bond becomes less attractive.

Detailed explanation-3: -Australian government bonds are considered to be a very low risk investment product. Investors lend money to the government for a set period of time at a pre-determined interest rate.

Detailed explanation-4: -Bond yields are significantly affected by monetary policy-specifically, the course of interest rates. A bond’s yield is based on the bond’s coupon payments divided by its market price; as bond prices increase, bond yields fall. Falling interest interest rates make bond prices rise and bond yields fall.