This is a n student that annoying me all the time with questions. Please I need this ASAP tonight. Very nicely written discussion post. Most bonds pay a fixed amount of interest, so the interest payments you receive aren't affected by the bond price. Yield, which calculates the interest payment in relation to the bond's price, does change, but not the actual interest payment made. Keeping this in mind, why do interest rates tend to have an inverse relationship with bond prices? Also can you think of any specific bond types that do not pay a fixed amount of interest?