Which of the following statements is correct? Blooms: Understand
A)Interest rates and bond prices vary directly.
B)Interest rates and bond prices vary inversely.
C)Interest rates and bond prices are unrelated.
D)Interest rates and bond prices vary directly during inflations and inversely during recessions.

Question

Quizplus · Accepted Answer

Interest rates and bond prices have an inverse relationship; when interest rates rise, bond prices fall, and vice versa.

Which of the Following Statements Is Correct? Blooms: Understand