Describe the relationship between the fair value of a bond (PV in Excel and on your calculators) and yields (Rate in Excel and I/Y on your calculators).

A. None of these answers is correct.

B. Fair values and yields are directly related, e.g., if yields rise then fair values rise, and vice versa.

C. Fair values and yields are inversely related, e.g., if yields rise then fair values fall, and vice versa.

D. The relationship between fair values and yields cannot be determined without the coupon rate on the bond.