Interest Rates and Company Valuation
9 Pages Posted: 12 Feb 2013 Last revised: 26 May 2019
Date Written: May 23, 2019
Interest rates have a considerable bearing on share prices. Any investor’s experience shows that, in general, when interest rates fall significantly, share prices rise, and vice-versa. We begin by observing the evolution of interest rates in the last 22 years in the United States. We also look at changes in the yield curve.
Keywords: Value, Interest rates, Yield curve, Treasuries
JEL Classification: G12, G31, M21
Suggested Citation: Suggested Citation