Asked by
Takeiya Wright
on Nov 08, 2024
Verified
Bond prices are inversely related to market interest rates.
Bond Prices
The amount of money at which a bond is trading, which fluctuates based on interest rates, credit quality, and other factors.
Market Interest Rates
The prevailing rates at which borrowers can obtain loans and lenders can invest their funds in the financial markets.
- Grasp the relationship between bond prices and market interest rates.
Verified Answer
RM
Learning Objectives
- Grasp the relationship between bond prices and market interest rates.