Economics · Banking and Monetary Policy
With reference to government bond yields in India, consider the following statements: I. When bond prices fall in the secondary market, the yield for new investors decreases. II. A rise in interest rates by the central bank generally results in higher bond yields. Which of the statements given above is/are correct?
- 1Neither 1 nor 2
- 2Both 1 and 2
- 32 only✓
- 41 only
Correct answer
2 only
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