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Which of the Following Is a TRUE Statement About the Relationship

Question 115

Multiple Choice

Which of the following is a TRUE statement about the relationship between the price of bonds and the interest rate?


A) The prices of bonds are directly related to the interest rate.
B) The prices of bonds increase when the interest rates rise.
C) The prices of bonds are unrelated to the interest rate.
D) The prices of bonds are inversely related to the interest rate.

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