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Find out the current rates and discuss why the rates differ between companies and why they are decreasing? |
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Answer» HeyaaExplanation:Interest rates and bond prices have an INVERSE relationship; so when one goes up, the other goes down. ... As market interest rates change, a bond's COUPON rate—which, REMEMBER, is fixed—becomes more or less attractive to investors, who are THEREFORE willing to pay more or less for the bond itself. |
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