Bond prices are inversely related to interest rates and are not directly influenced by stock market conditions.

Question

Quizplus · Accepted Answer

Bond prices and interest rates have an inverse relationship because when interest rates rise, the price of existing bonds typically falls to adjust the yield in line with new issues. While stock market conditions can indirectly affect bond markets through economic sentiment and policy changes, bond prices are not directly influenced by stock market fluctuations.

Bond Prices Are Inversely Related to Interest Rates and Are