Causes and Effects of the Interest Rate on Treasury Bounds and Cooperate Bounds Controlled by the FRB

Abstract

This research paper focuses on the topic of the causes and effects of the interest rate on bounds and stocks controlled by the Federal Reserve Bank and the evaluation of an oil company and innovative technology company. At the beginning of this research paper, this paper introduces the background of this research paper: the changes in interest rates affect bonds and stocks, which also have an impact on their value. For investors, how to choose bonds and stocks with value through different situations caused by changes in interest rates has become a big problem for them. Also, this paper summarizes the analysis part and makes two conclusions about the topic. One is investors should be concerned about the changes in interest rates, which have an impact on the values of the bounds and stocks. The other conclusion comes out and clearly indicates that risks in investing in bonds and stocks are unpredictable.