That relationship between a bond's price and its yield is described as:
AInverse
BIdentical
CIrrelevant
DImmediate
Answer & Solution
Correct answer: A. Inverse
1. When one goes up, the other goes down.
2. Price and yield sit on opposite sides of the same calculation.
3. The relationship is inverse.
_Source: OpenStax Principles of Finance 2e, Chapter 10, Bonds and Bond Valuation._
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