Purchase Solution

The Relationship between Bond Price and Yield

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

Solution Summary

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

Solution Preview

"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 ...

Purchase this Solution


Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.