A/An__________ relationship exists between the price of outstanding bonds in the secondary market and the prevailing level of market interest rates.

Question

Quizplus · Accepted Answer

The relationship between the price of outstanding bonds in the secondary market and the prevailing level of market interest rates is inverse. As interest rates rise, the value of bonds decreases, resulting in a lower price in the secondary market, and as interest rates fall, the value of bonds increases, resulting in a higher price in the secondary market.

A/An__________ Relationship Exists Between the Price of Outstanding Bonds in the Secondary