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Question no 1 f20- + 13- Relationship 12- 10 lnterest Rate (Percent) O + l l l l l l l l 500 600 700

Question no 1

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\f20- + 13- Relationship 12- 10 lnterest Rate (Percent) O + l l l l l l l l 500 600 700 800 900 1000 1100 1200 1300 Price of Bond (Dollars) The line showing the relationship between bond prices and interest rates has a Y slope; in other words, there is Y relationship between bond prices and interest rates

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