Question: What is the relationship between bond prices and yields, and why does this occur? Question 2 5 options: Bond prices and yields move in opposite
What is the relationship between bond prices and yields, and why does this occur?
Question options:
Bond prices and yields move in opposite directions because a rise in yields reflects a decline in the present value of future cash flows.
Bond prices and yields move in opposite directions because higher bond prices always lead to higher returns for investors.
Bond prices and yields move in the same direction because higher yields make bonds more attractive.
Bond prices and yields are unrelated because they are determined by different market forces.
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