If Movements in Yields Cause Bond Prices to Change, It

question 32

True/False

If movements in yields cause bond prices to change, it follows that bond prices will not change provided yields remain the same.

---

Definitions:

Share Value

The price at which a particular share of stock is traded on the market, determined by supply and demand.

Ex-dividend Date

The date on which a stock trades without its dividend, meaning that the seller is entitled to the dividend, not the buyer.

Regular Cash Dividend

A payment made by a company to its shareholders, usually in the form of cash, out of its profits or reserves on a regular basis, such as quarterly or annually.

Stock Price

The cost of purchasing a share of a company's stock, representing partial ownership in the company.