Social Sciences, asked by sunuadhikari237, 3 days ago

explain the price yield relationship of bond​

Answers

Answered by sivaparvathivallamse
1

Explanation:

A bond's yield is the discount rate that links the bond's cash flows to its current dollar price. When inflation is expected to increase, interest rates increase, as does the discount rate used to calculate the bond's price increases. That makes the bond's price drop.

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