The Figure Given Below Shows the Demand [D and D']

question 22

Multiple Choice

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Which of the following describes the relationship between bond prices and bond yields?

• A)There is a positive relationship between the yield and the price.
• B)Every 1% increase in the bond price results in a 2% increase in the yield.
• C)When the bond price is greater than the annual interest, yield is greater than one.
• D)Bond price divided by the bid price is equal to the yield.
• E)There is an inverse relationship between the yield and the price.

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