… rising interest rates?
s Wohnbaubank bonds with fixed interest rate fall when interest rates are rising. s Wohnbaubank bonds with floating interest rate, on the other hand, benefit from rising interest rates. Given that these bonds ("floaters") have their interest rate periodically adjusted to a referential rate such as the EURIBOR, an increase in the level of interest rates also means a rising interest rate for the bonds. The price of the bond tends to oscillate around face value.
… stable interest rates?
In the case of stable interest rates, neither the price nor the coupon of s Wohnbaubank bonds changes (if other criteria, e.g. the rating of the issuer, stays unchanged).
… falling interest rates?
s Wohnbaubank bonds with fixed interest rate increase when interest rates are falling. Falling interest rates, on the other hand, have a negative impact on s Wohnbaubank bonds with floating interest rate. Given that these bonds ("floaters") have their interest rate periodically adjusted to a referential rate such as the EURIBOR, a decrease in the level of interest rates also means a falling interest rate for the bonds. The price of the bond tends to oscillate around face value.