Question: There is an _________________relationship between interest rates and bond values in the secondary market. When interest rates ____________, bond prices ______________, and when interest rates

  1. There is an _________________relationship between interest rates and bond values in the secondary market. When interest rates ____________, bond prices ______________, and when interest rates ______________, bond prices ____________.
  1. Positive; rise; rise; drop; drop
  2. Positive; rise; drop; drop; rise
  3. Inverse; rise; drop; drop; rise
  4. Inverse; rise; rise; drop; drop

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