The result of declining inflation on outstanding bonds would be:
A) lower prices and higher yields.
B) higher prices and higher yields.
C) lower prices and lower yields.
D) higher prices and lower yields.
Answer: D) higher prices and lower yields.
A) lower prices and higher yields.
B) higher prices and higher yields.
C) lower prices and lower yields.
D) higher prices and lower yields.
Answer: D) higher prices and lower yields.