How are bond prices determined in the market?
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How are bond prices determined in the market?
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Attach a Word document that addresses the following in detail. Include both the question and your answer. How are bond prices determined in the market? What is the relationship between interest rates and bond prices? Have you ever purchased a bond? If so, what was your experience with the purchase price and the value of the bond over time? Explain the different type of risk that a bond investor and issuer face. How does a bond’s term and collateral changed to affect its interest rate?
