All of the following are one of Malkiel's stated relationships between yield changes and bond prices except A) Bond prices move inversely to bond yields. B) Longer-maturity bonds experience larger price changes than shorter-maturity bonds. C) Bond price volatility increases at a diminishing rate as term to maturity increases. D) Bond price movements resulting from equal absolute increases or decreases in yield are symmetrical. E) Bond price volatility is inversely related to the coupon rate.

Question

Quizplus · Accepted Answer

Bond price movements resulting from equal absolute increases or decreases in yield are not symmetrical; bond prices increase more when yields fall than they decrease when yields rise by the same amount.

All of the Following Are One of Malkiel's Stated Relationships