When bond prices fall, yields tend to: fall twice as fast Get downgraded Rise Ge

Question

When bond prices fall, yields tend to: fall twice as fast Get downgraded Rise Get upgraded Get converted to common stock equity in preparation for an IPO The intention of the Allergan/Pfizer merger was to: Change the strategy of Pfizer Cahnge their tax domain from the US Increse their tax bill Leave before Donald Trump Leave before Bernie Sanders Hedge Funds use________in order to obtain higher investment returns Bi Lateral Thinking Leaverage Taxes Interest Rates Economic Cycle Proctor & Gamble (P&G;) is considered a: Dividend Company Growth Company Unprofitable Company Illiquid Company that seeks to exceed Apple's growth rate Technology Company Exxon was recently downgraded from: A+ AAA+ AA+ AAA BBB_________"interest is the eighth wonder of the world. He who understands earns it... he who doesn't... pays it." Simple Interest Minimal Interest Minimal Interest Collateral Compound

Explanation / Answer

20) c

Bond price and bond yield has an inverse relationship. So, when prices fall, the yield rises and vice versa.

As per the formula ,Current Yield = Dividend/Bond Price , the inverse relationship is evident.

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