Economics · Macroeconomics
When the market rate of interest falls, which of the following statements is correct regarding fixed-income bonds?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Bond prices will fall and bond yields will rise
- 2Bond prices will rise and bond yields will fall✓
- 3Bond prices and bond yields will both fall
- 4Bond prices and bond yields will both rise
Correct answer
Bond prices will rise and bond yields will fall
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