Bond prices and their yields are _____ because the bond's face value and _____are fixed, forcing its _____ to change in response to changing market conditions.

Question

Quizplus · Accepted Answer

Bond prices and their yields are negatively related because the bond's face value and coupon payment are fixed, forcing its sales price to adjust in response to changing interest rates or market conditions. When yields rise, bond prices fall, and vice versa.

Bond Prices and Their Yields Are _____ Because the Bond's