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- 2011-7-11
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- 2016-4-15
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***Study section 16, LOS 64c - Bond values are inversely related
Market rate decreases below coupon rate -> bond price increases
Market interest rate increases about coupon rate -> bond price decreases
***When calculating the price of a bond, the lower the market interest rate, the greater the present value. The price of a bond is the sum of the quotients of the payment stream... ...so the payment stream will be larger with a lower interest rate. |
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发表于 2011-7-11 17:41
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