Economy, asked by paritoshnasre, 3 months ago

When investors doubt the creditworthiness of a borrower, what should happen to the price and yield of the bond?

Answers

Answered by sanchitasingh86
4

Answer:

Prices go down, yield go up

If interest rates rise above 8% and if the investor decides to sell it bond's price will fall as it makes bond unattractive as compare to other higher interest paying bonds/ instruments.

Explanation:

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