Bond prices are impacted by both the direction and magnitude of market interest rate changes.

Name: Bond prices are impacted by both the direction and magnitude of market interest rate changes.
Brand: Quizplus
Rating: 4.7 (47 reviews)

Question

Quizplus · Accepted Answer

Bond prices move inversely to changes in interest rates. When interest rates rise, bond prices fall, and when interest rates fall, bond prices rise. The magnitude of the change in interest rates can also affect bond prices, as larger changes in interest rates can lead to larger changes in bond prices.

Bond Prices Are Impacted by Both the Direction and Magnitude