Inverse relationship between price change and interest rate change is represented by

A. negative discount

B. negative duration

C. positive duration

D. positive discount

Answer: Option B

Solution(By Examveda Team)

Inverse relationship between price change and interest rate change is represented by negative duration. A situation in which the price of a bond or other debt security moves in the same direction of interest rates. That is, negative duration occurs when the bond prices go up along with interest rates and vice versa.