Question: Why does a bond's value fluctuate over time? The coupon rate varies, while market interest rates are fixed The coupon rate and par value are
Why does a bond's value fluctuate over time?
The coupon rate varies, while market interest rates are fixed
The coupon rate and par value are fixed, while market interest rates change
A bond's par value changes over time
A bond's value does not fluctuate over time
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
