Start learning →

If market rates rise, what happens to a bond future's price?

ADoubles
BUnchanged
CFalls
DRises
Answer & Solution
Correct answer: C. Falls
Price and yield are inversely related, so higher rates push futures prices down.
Practise this question with Quill — CA Final →

Keep practising Interest Rate Risk

Browse all Interest Rate Risk questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Interest Rate Risk lesson →
Related questions