Chartered Financial Analyst Level 2 test

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CFA Level 2 - Fixed Income

Beginner

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In the arbitrage-free valuation framework, which of the following statements about the relationship between the price of a bond and its yield is most accurate?

There is no definitive relationship between the price of a bond and its yield, as it depends on various market factors and the specific characteristics of the bond.

The price of a bond is inversely related to its yield, with prices decreasing as yields increase.

The price of a bond is directly proportional to its yield, with prices increasing as yields increase due to the higher coupon payments.

In the arbitrage-free valuation framework, which of the following statements about the relationship between the price of a bond and its yield is most accurate? .spinner_0XTQ{transform-origin:center;animation:spinner_y6GP .75s linear infinite}@keyframes spinner_y6GP{100%{transform:rotate(360deg)}}

In the arbitrage-free valuation framework, which of the following statements about the relationship between the price of a bond and its yield is most accurate?