Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
The statement about the relationship between interest rates and bond prices that is true is A. There is an inverse relationship between bond prices and interest rates, and the price of long-term bonds fluctuates more than the price of short-term bonds for a given change in interest rates (assuming that the coupon rate is the same for both).
It should be noted that when there's an increase in the interest rate, the price of bonds will be low. also, a decrease in the interest rate will lead to a higher bond price.
At a particular interest rate, the price of long-term bonds fluctuates more than the price of short-term bonds. It should be noted that the relationship between the bond price and Interest rate isn't direct but rather inversely related.
In conclusion, the correct option is A.
Read related link on:
https://brainly.com/question/24926932
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.