The reason for a fall in the prices of bonds when interest rates go up and to discuss whether bond investors like to receive high interests or not Introduction: Bond is the security by which a company can raise its capital. Bond issuers and investors are party to such transactions. Bond issuers have to pay some amount at a given period of time to the investor.

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Chapter 14, Problem 4PS

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To determine:

The reason for a fall in the prices of bonds when interest rates go up and to discuss whether bond investors like to receive high interests or not

Introduction:

Bond is the security by which a company can raise its capital. Bond issuers and investors are party to such transactions. Bond issuers have to pay some amount at a given period of time to the investor.

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