Explain why there is an inverse relationship between the price of bonds and the relevant interest rate. Explain the effect of each of the following upon interest rates and upon the price of bonds:

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Reference:

Hubbard, R. (2012). Money, Banking, and the Financial System (1^st ed.). New York, N.Y.: Pearson

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Explain why there is an inverse relationship between the price of bonds and the relevant interest rate. Explain the effect of each of the following upon interest rates and upon the price of bonds:

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