When the Inter Temporal rate is high and the price of the bond is low-> return is high and so the inter temporal rate is directly proportional to the default free rate. How is it indirectly proportional as stated in the book?
When the Inter Temporal rate is high and the price of the bond is low-> return is high and so the inter temporal rate is directly proportional to the default free rate. How is it indirectly proportional as stated in the book?