Which bond market segments tend to be highly correlated and move together?
A) Short and long term bonds.
B) Short and intermediate term bonds.
C) Intermediate and long term bonds.
D) Short, intermediate and long term bonds.
E) None of the above.

Question

Quizplus · Accepted Answer

Short, intermediate, and long term bonds often move together in response to changes in overall market interest rates, although the magnitude of their price changes can differ due to duration differences.

Which Bond Market Segments Tend to Be Highly Correlated and Move