Answer:
The correct answer here is B) when the market interest rate are rising, the bond market would be considered bearish.
Explanation:
There is an inverse relationship between the bond prices and interest rates, which means when there is a fall in market interest rate ,bonds which pay fixed interest rate will seem to look more attractive to the investors which will lead to the increase in the prices of bonds. Same way when the market interest rate rises , the fixed interest paid on bond will now not look so attractive to the investor, which will lead to the decrease in prices of bonds, so therefore in this situation bond market would be considered bearish.
