A decline in the price of a bond causes the yield of the bond to
A)rise.
B)fall.
C)remain unchanged.
D)rise if it's a short-term bond, fall if it's a long-term bond.

Name: A decline in the price of a bond causes the yield of the bond to A)rise. B)fall. C)remain unchanged. D)rise if it's a short-term bond, fall if it's a long-term bond.
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Question

Quizplus · Accepted Answer

The yield of a bond moves in the opposite direction of its price. Therefore, if the price of a bond declines, the yield will rise.

A Decline in the Price of a Bond Causes the Yield