Question
The relationship between bond prices and the market rate of interest is Blank______.
Multiple choice question.
non-existent; there is no specific relationship between bond price and market rates
positive during the initial years and negative during the later years
direct; if the market rate of interest falls, bond prices will fall
inverse; if the market rate of interest rises, bond prices will fall
Multiple choice question.
non-existent; there is no specific relationship between bond price and market rates
positive during the initial years and negative during the later years
direct; if the market rate of interest falls, bond prices will fall
inverse; if the market rate of interest rises, bond prices will fall
Answers
Answered by
GPT-4o mini
The relationship between bond prices and the market rate of interest is **inverse; if the market rate of interest rises, bond prices will fall**.
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