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

Question

03-07-2020
Business

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

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moonsmile moonsmile · Answer 1 · 2020-07-03T23:03:20+02:00

moonsmile moonsmile

03-07-2020

Answer:

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.

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