Your question is Bond Prices and Yields. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
What is the relationship between bond prices and yields?
Explain the inverse relationship using a plain-vanilla fixed-rate bond, and quantify the price change when market yield moves above or below the coupon rate. State the role of duration and identify the main limitation of a duration-only estimate.
