What is the association between interest rates and bond prices? a   They move in the same directions. b   They move in opposite directions. c   They sometimes move in the same directions, sometimes in opposite directions. d   They have no relationship with each other (i.e., they are independent)

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.6: Perpetuities
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7. What is the association between interest rates and bond prices?

a  

They move in the same directions.

b  

They move in opposite directions.

c  

They sometimes move in the same directions, sometimes in opposite directions.

d  

They have no relationship with each other (i.e., they are independent).

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