American_Bankers_Association
CTFA · Question #73
Interest rates and bond prices:
The correct answer is B. Move in opposite directions. See the full explanation below for the reasoning.
Investment Management
Question
Interest rates and bond prices:
Options
- AMove in the same direction
- BMove in opposite directions
- CSometimes move in the same direction, sometimes in opposite directions
- DHave no relationship with each other (i.e., they are independent)
How the community answered
(33 responses)- A15% (5)
- B76% (25)
- C6% (2)
- D3% (1)
Topics
#interest rates#bond prices#inverse relationship#fixed income
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