Series 7 - General Securities Representative Exam
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Bond prices are being bid up very hard on a flight to safety play, as there is fear in the equity market. Which of the following is TRUE?
Yields are increasing
A
Yields are decreasing
B
Yields and prices are increasing
C
Yields and prices are decreasing
D
Explanations
Remember, yield and price move inversely to one another. Since the bonds are going up in price, the yields are decreasing