A drop in a bond's yield results compared to a comparable rise in a bond yields

Question

Quizplus · Accepted Answer

A drop in a bond's yield results in a larger price increase because as the bond's yield decreases, its coupon rate becomes more attractive to investors, and thus the demand for the bond increases, driving up its price. On the other hand, a rise in a bond's yield results in a smaller price decrease because an increase in yield makes the bond less attractive to investors, reducing the demand and pulling down its price.

A Drop in a Bond's Yield Results Compared to a Comparable