Q. Assertion (A) : There exits inverse relationship between interest rates and bond prices. Reason (R) : A bond price represents the present discounted value of the payments agreed uponat the time when the bond was issued. Codes : (Solved)
1. both (a) and (r) are correct, and (r) is the correct explanation of (a).
2. (a) is correct, but (r) is not the correct explanation of (a).
3. (a) is correct, but (r) is incorrect.
4. (a) is incorrect, but (r) is correct.
- a. both (a) and (r) are correct, and (r) is the correct explanation of (a).