Series 7 - General Securities Representative Exam
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 increasingA
Yields are decreasingB
Yields and prices are increasingC
Yields and prices are decreasingD
Remember, yield and price move inversely to one another. Since the bonds are going up in price, the yields are decreasing