Why market price changes with interest rate
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The market price of outstanding issues often varies from par (face value) because ______
the maturity data has changed, the coupon rate has changed, the market rate of interest has changed, or old bonds sell for less than new bonds
I believe - the market rate of interest has changed is the answer - please advise answer & why - thanks!
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Solution Summary
The solution explains why the market price of outstanding securties changes when interest rates change
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Yes the answer is that the market rate of interest has changed.
The market price of the bond reflects the required rate of return ...
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