The Relationship Between a Bond's Price and the Yield to Maturity

question 43

Multiple Choice

The relationship between a bond's price and the yield to maturity

• A)changes at a constant level for each percentage change of yield to maturity.
• B)is an inverse relationship.
• C)is a linear relationship.
• D)changes at a constant level for each percentage change of yield to maturity and is an inverse relationship.

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Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.

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