What relationship is between interest rates and bond prices

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Reference no: EM133572858

Discussion Post: Bonds and Valuation

Address all of the question prompts below. Support your responses with appropriate evidence from your course textbook and/or credible information from the Internet. Your paper should be between 2 and 3 pages long, excluding the title page and references page.

Tasks:

Question I. Discuss how bond prices are determined in the market, what the relationship is between interest rates and bond prices, and how a bond's price changes over time as it approaches maturity.

Question II. Explain the different types of risk that bond investors and issuers face and discuss how a bond's terms and collateral can be changed to affect its interest rate.

Reference no: EM133572858

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