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    The Relationship between Bond Price and Yield

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    Please explain this question:
    The fundamental relationship between bond price and yield is that they relate to each other inversely. How is this so?

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    "The most important bond pricing relationship to understand is the inverse relationship between bond prices and interest rates (or bond yields)—as interest rates rise, bond prices fall and as interest rates fall, bond prices rise.
    It is also important to recognize that interest ...

    Solution Summary

    This solution defines the relationship between bond price and yield. It include a reference for further investigation.