Ceteris paribus, the price and yield on a bond are
A) positively related.
B) negatively related.
C) sometimes positively and sometimes negatively related.
D) not related.
E) indefinitely related.

Question

Quizplus · Accepted Answer

The price and yield on a bond are negatively related. When the price of a bond goes up, its yield goes down, and vice versa. This inverse relationship is fundamental to bond investing.

Ceteris Paribus, the Price and Yield on a Bond Are