Bond Prices and Interest Rates

They fluctuate randomly

They stay the same

They decrease (correct)

They increase

They have a positive correlation

They have no correlation

They have a negative correlation (correct)

Their relationship depends on other factors

It is a result of random market fluctuations

It is a result of government intervention

It is a result of supply and demand dynamics (correct)

It is a result of market speculation

<p>Bond prices and interest rates have an inverse relationship.</p> Signup and view all the answers

<p>Bond prices decrease.</p> Signup and view all the answers

<p>It is due to the fixed coupon rate of bonds.</p> Signup and view all the answers