Economy, asked by divyasingh78143, 4 months ago

establish the reltion between market rate of of interest and market ch price of Bond with the help of an example​

Answers

Answered by nissigracem19
0

Answer:

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Explanation:

Bond Prices and Interest Rates

As market rates of interest rise, bond prices will fall. Alternatively as market rates of interest fall, bond prices will rise. Bond prices and the market rate of interest are inversely related. This is because the cash flow stream you receive from the bond is fixed.

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