There is an inverse relation between debt instrument prices and nominal interest rates in the marketplace.

Name: There is an inverse relation between debt instrument prices and nominal interest rates in the marketplace.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

When interest rates rise, the prices of fixed income securities such as bonds and notes fall, and when interest rates fall, the prices of these securities rise. This inverse relationship between bond prices and interest rates is also known as interest rate risk.

There Is an Inverse Relation Between Debt Instrument Prices and Nominal