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What will happen to the bond price and the yield to maturity

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Reference no: EM132957200

Problem 1: Investors are concerned about market conditions and rush to buy 10-year Treasury bonds. As more investors buy the bonds, what will happen to the bond's price and the yield to maturity?

Option 1: The bond's price will rise and the yield to maturity will rise.
Option 2: The bond's price will fall and the yield to maturity will rise.
Option 3: The bond's price will fall and the yield to maturity will fall.
Option 4: The bond's price will rise and the yield to maturity will fall.

Reference no: EM132957200

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