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QUESTION

Bonds: Please show all steps of your answer Please. There is an inverse relationship between bond prices and yields.

Bonds:

Please show all steps of your answer Please.

There is an inverse relationship between bond prices and yields. This inverse relationship will be demonstrated by calculating bond prices to show that interest rates move inversely: if yields rise, then bond prices fall. Bonds will be sold either at a premium or a discount. With this in mind respond to the following question.

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