Question

How did bond yields and NAVs of debt funds react when the RBI did not hike interest rates as expected?

a.

Bond yields increased, and NAVs of debt funds decreased

b.

Bond yields decreased, and NAVs of debt funds increased

c.

Bond yields and NAVs remained unchanged

d.

The impact on bond yields and NAVs depends on other market factors

Answer: (b).Bond yields decreased, and NAVs of debt funds increased Explanation:When the RBI did not hike interest rates as expected, bond yields decreased, leading to an increase in the Net Asset Values (NAVs) of debt funds.

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Q. How did bond yields and NAVs of debt funds react when the RBI did not hike interest rates as expected?

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