Register
How do you find the value of a bond, and why do bond prices change
130k views
1 vote
How do you find the value of a bond, and why do bond prices change

User Axxelsian
by
4.5k points

1 Answer

1 vote

Answer:

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.

User Perhentian
by
4.2k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

4.7m questions

6.0m answers

Other Questions

Which of the following should be considered last when searching for financing? Family members Banks Commercial finance companies Credit cards I'm guessing it's C but idk
Explain the similarities and differences between how both producers and consumer use money
edna kropp's gross income for a year included salary, $12,400; commission, $27,750; intrerest, $440. Her adjustment to income were payment to a retirement plan, $2,000, and a penalty for withdrawing savings
Your assessment tool contains rich data about child progress in language and literacy but no details to explain the differences between children. You decide to: A. Replace the tool with another B. Analyze
When goods are produced at the lowest possible cost, an economy is said to have achieved:?
Link Copied!