Select an option above to see an explanation here.

A) Interest rate changes and bond prices have an inverse relationship: when rates rise, bond prices fall and vice versa.
B) This is incorrect because interest rates significantly impact bond prices. When interest rates rise, bond prices fall and vice versa.
C) This is incorrect because while bond's maturity can influence its sensitivity to interest rate changes, the fundamental relationship between interest rates and bond prices is inverse.
D) This is incorrect because while a bond's coupon rate can influence its price, the fundamental relationship between interest rates and bond prices is inverse.