Suppose you are interested in finding the relationship between bond prices and interest rates. You run a

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Suppose you are interested in finding the relationship between bond prices and interest rates. You run a regression of bond prices against the prime lending rate and find that the slope of the regression line is negative. What does this tell you about the relationship between bond prices and interest rates? Is this relationship consistent with standard financial theory?

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Statistics For Business And Financial Economics

ISBN: 9781461458975

3rd Edition

Authors: Cheng Few Lee , John C Lee , Alice C Lee

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