Respuesta :

Answer:

Prices go down, yield go up

If interest rates rise above 8% and if the investor decides to sell it bond's price will fall as it makes bond unattractive as compare to other higher interest paying bonds/ instruments.

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Explanation:

Answer:

Brainliest pls

Explanation:

Prices go down, yield goes up

As we know that there is an opposite relationship between the price of the bond and the yield which means if the creditworthiness comes into doubt so it reduced the price of the bond and at the same time it increased the yield

So as per the given situation as the investor doubt the borrower's creditworthiness so the price would fall and yield would go up

hence, the same is to be considered