Supply and Demand in the Bond Market
Supply and Demand in the Bond Market Law of Demand It stats that “The higher the price of bond lower the demanded of bond”. The demand curve illustrates the negative or inverse relation between price and quantity of demand bond and direct between interest and quantity of demand bond. Law of Supply It stats that “The higher the price of bond the higher the quantity of supply bond”. The supply curve illustrates the positive or direct relation between price and quantity of supply bond and inverse between interest and quantity of supply bond.