Select an option above to see an explanation here.

A) Interest rates and bond prices have an inverse relationship: when interest rates rise, bond prices fall, and when interest rates fall, bond prices rise.
B) This is incorrect because interest rates and bond prices are closely linked. When interest rates rise, bond prices generally fall, and vice versa.
C) This is incorrect because regardless of the type of bond, the relationship between interest rates and bond prices remains inverse.
D) This is incorrect because while an issuer's credit rating can affect the bond's yield, the relationship between interest rates and bond prices is always inverse.