Question

Which of the following describes the relationship between stock and bond prices and interest rates?

There is a direct and positive relationship between the rate of interest and stock and bond prices. (As interest go up, stock and bond prices rise as well.)

The relationship is far too difficult to quantify.

There is an inverse relationship between interest rates and the price of a stock or a bond. (As interest rates go up, stock and bond prices decline.)

It varies with the performance of the stock or bond market.

Answer #1

The relationship between interest rates and stock or bond prices is fairly indirect but ganergene or usually they tend to move in opposite directions it means that usually they have an inverse relationship. It means that when interest rate falls then bond prices will increase and when interest rate increases then stock or bond prices will go down. But it is not guaranteed that this will be always true for example when the economy falls into recession then stock prices will fall and in order to restore the economy, the central bank of that country will decrease the interest rates. Although interest rates are falling and stock prices will also continue to fall even as bond price rises because of the low sentiments among the consumers.

So we can conclude that generally they are indirectly inversely related but it's not the same case in every situation.

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.
You currently own a 30 year Treasury Bond paying a 4% annual
coupon rate. The market interest rates for like securities rose to
5%. Would your...

How are bond prices determined in the market? What is the
relationship between interest rates and bond prices?

Describe the relationship between existing bond prices and
market interest rates, and given a rising interest rate
environment, why would an investor want to invest in bonds?
paragraph answer please

There is an inverse relationship between interest rate
and money demand also there is an inverse relationship between
interest rate and bond prices too. Do these relationships hold when
interest rates are negative?
Thank you for your time.

Which of the following best describes interest rate risk?
The risk that a bond issuer will default on the promised coupon
payments of a bond.
The risk that the periodic coupon payments received from a bond
cannot be reinvested at the same rate of return.
The inverse relationship between changes in interest rates and
the price of a fixed income security.
The risk that the purchasing power of periodic coupon payments
received will diminish over a long period of time.

Analyse the relationship between bond prices and interest rates
during recession.

The
relationship between risk-free interest rates and stock prices，such
as what reason lead to stock price to fall，use your own
word，thanks.

Which of the following statements regarding bond prices and
market interest rates are most likely to be
true?
Bond prices and market interest rates will move in the opposite
direction.
Interest rate risk can be described as the changes in market
interest rates that will cause fluctuations in a bond’s price.
The prices of long-term bonds display greater price sensitivity
to interest rate changes than do the prices of short-term
bonds.
I and II only.
I and III only.
II...

Which of the following statements regarding bond prices and
market interest rates are most likely to be
true?
Bond prices and market interest rates will move in the opposite
direction.
Interest rate risk can be described as the changes in market
interest rates that will cause fluctuations in a bond’s price.
The prices of long-term bonds display greater price sensitivity
to interest rate changes than do the prices of short-term
bonds.
Group of answer choices
I and II only.
I...

Assuming all else stays equal, when interest rates rise
Select one:
a. bond prices go up.
b. bond prices go down.
c. bond prices may go up or down, depending on whether it is a
premium bond or a discount bond.
d. bond prices may go up or down, depending on the time to
maturity of the bonds.

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