Question

How do you find the value of a bond, and why do
bond prices change?

Answer 1

The value of a bond changes based on the interest rate and the time that has elapsed.

Step-by-step explanation:

Answer 2

Step-by-step explanation:

as the discount rate gets larger, the price of the bond will decrease. as the coupon rate increases, the bond price will increase. bond prices are calculated by taking the present value of the coupons and face value of bonds. If the coupons are larger, the present value of the coupons will also be larger.