Question: Why is the relationship between price and yield negative? a. Because investors reward higher cash-flows with a lower price. b. Because governments regulation prohibits a

Why is the relationship between price and yield negative? a. Because investors reward higher cash-flows with a lower price. b. Because governments regulation prohibits a positive relationship. c. Because an increase in the yield discounts cash flows at a higher rate and so their net present value decreases. d. Because cash flows are variable over a bonds life.

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