If Bond Prices Were to Decline, the Current Yield Would

question 14

True/False

If bond prices were to decline, the current yield would increase.

---

Definitions:

Uncorrelated

Describes two or more variables that do not have any statistical relationship, meaning changes in one do not predict changes in the other.

Correlation Coefficient

A statistical measure that describes the degree to which two variables move in relation to each other.

Strongest Relationship

In statistics and research, the most significant and consistent association between two variables.

Variables

Elements, features, or factors that are liable to vary or change within a study or experiment.