6 Questions
Which direction do bond prices typically move when interest rates rise?
They decrease
What is the relationship between bond prices and interest rates?
They have a negative correlation
Why do bond prices move in the opposite direction of interest rates?
It is a result of supply and demand dynamics
Which of the following statements accurately describes the relationship between bond prices and interest rates?
Bond prices and interest rates have an inverse relationship.
What happens to bond prices when interest rates increase?
Bond prices decrease.
Why do bond prices move in the opposite direction of interest rates?
It is due to the fixed coupon rate of bonds.
Test your knowledge on the relationship between bond prices and interest rates with this quiz. Explore the impact of rising interest rates on bond prices and why they often move in the opposite direction. Find out which way bond prices tend to go when interest rates rise.
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