Assertion (A) : There Exits Inverse Relationship Between Interest Rates

Multiple Choice

Assertion (A) : There exits inverse relationship between interest rates and bond prices. Reason (R) : A bond price represents the present discounted value of the payments agreed upon at the time when the bond was issued. Codes :

A) both (a) and (r) are correct, and (r) is the correct explanation of (a) .
B) (a) is correct, but (r) is not the correct explanation of (a) .
C) (a) is correct, but (r) is incorrect.
D) (a) is incorrect, but (r) is correct.