4. The relationship between the bond prices and interest rates is one of the Following a. direct ; l

Discussion in 'Banking' started by Vala Shreyal, Sep 11, 2017.

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  1. Vala Shreyal

    Vala Shreyal New Member

    4. The relationship between the bond prices and interest rates is one of the Following a. direct ; linear b. inverse ; linear c. direct and curvilinear d. no relationship
     
  2. Manthan Meena

    Manthan Meena Member

    Explain your ans sir , then I will give the correct answer
     
  3. Anitha SK

    Anitha SK New Member

    Option b. If interest rates will increase, there will be less demand for bonds resulting in decrease in bond price.
     
  4. Niket Azad

    Niket Azad New Member

    None of choices is correct... Price falls with interst rate rise but its not linear...
     
  5. Kapil Soni

    Kapil Soni Member

    Inverse relationship but the graph will be convex, what's the answer?
     
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