In general, the price and yield on a bond are inversely related. Thus, as the price of
Question:
In general, the price and yield on a bond are inversely related. Thus, as the price of a bond falls (becomes cheaper), the demand for the bond will rise. This is the same as saying that as the yield on a bond rises, it becomes cheaper and the demand for it increases.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Markets And Institutions
ISBN: 9781259919718
7th Edition
Authors: Anthony Saunders, Marcia Cornett
Question Posted: