Variable Life Practice Questions - Insurance Commission Licensure Exam - Variable Life Variable Contract Agent (Philippines) Exam

Bond prices move inversely to interest rates; when interest rates rise, bond prices fall. Bond prices move in the same direction as interest rates; when interest rates rise, bond prices rise. Bond prices are unaffected by interest rate movements and are driven solely by issuer credit ratings. Bond prices fluctuate randomly in response to interest rate changes without a defined correlation.