3)Which statement is true? a)Yield rises when price rises b)Yield falls when the price rises c)Yield and price have no relationship

Look at the bonds below and use the information to answer the next two questions. modified Duration Bond A 6.5 Bond B 8.15 Bond C 7.35 Bond D 4.25 You presently own bond C. You expect yield is going to fall. Which strategy will best take advantage if your belief yield is going to fall? Sell bond C and buy bond B Sell bond C and buy bond D O Sell bond C and buy bond A Do not change the strategy and keep the same quantity of bond C Look at the bonds below and use the information to answer the next two questions. modified Duration Bond A 6.5 Bond B 8.15 Bond C 7.35 Bond D 4.25 You presently own bond C. You expect yield is going to fall. Which strategy will best take advantage if your belief yield is going to rise? Sell bond C and buy bond B C Sell bond C and buy bond D C Sell bond C and buy bond A . Do not change the strategy and keep the same quantity of bond C