Bond prices and interest rates move in the same direction.

Name: Bond prices and interest rates move in the same direction.
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Question

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Bond prices and interest rates have an inverse relationship. When interest rates go up, bond prices go down, and when interest rates go down, bond prices go up. This is because investors demand a higher yield to compensate for the lower value of their fixed income investments in a high-interest rate environment, and vice versa.

Bond Prices and Interest Rates Move in the Same Direction