How and where do I buy bonds?

How can GOv raising interest rate makes bonds more attractive to buy?

• Is it only applicable for newly issued bonds that corresponds to the interest rate mandated by the federal government? What about bonds on the secondary market? SInce raising federal interest rate makes the older bonds less attractive since the increase interest rate eats up more of the predetermined rate of the old bonds thus resulting into lower yield? SO basically, federal raising interest rate only makes newly issued bonds attractive, but not for the secondary market. RIght?:

• Answer:

  Right. No long-winded answer required. You have a firm grasp of the mechanics. PS - To the previous respondee's point, I have about $150 million in carry trades in my portfolio at the moment. This term generally refers to bonds or derivatives you plan to hold to maturity/expiration. In this scenario, it is true that you will earn the coupon as stated when you entered the position, unaltered by any rate change. However, if rates go up and you need to close the position before it matures, you will take a mark-to-market loss.