The Relation Between Bond Prices and Interest Rates Is

question 24

Multiple Choice

The relation between bond prices and interest rates is:

• A) inverse and linear.
• B) direct and linear.
• C) inverse and convex.
• D) inverse and concave.

---

Definitions:

Predicting

The act of making educated guesses or forecasts about future events based on current or past information.

Future

A time period that is yet to come and the events or conditions that will happen in that time.

Jean-Baptiste Lamarck

An early 19th-century French biologist known for his theory of inheritance of acquired characteristics, a precursor to Darwin’s theory of evolution.