Based on the relationship between the above mentioned measures, the following is true:
- Price and yield to maturity are inversely related.
- When YTM rises, the price of the bond falls.
What is Yield to Maturity?
- It is the discount rate on the bond.
- It shows the riskiness of the bond.
When the YTM is high, it means that the bond is more risky which leads to it having a lower price to compensate for the risk. The reverse is true.
Find out more on YTM at https://brainly.com/question/15172286.
