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    Bond prices and interest rates: the relationship

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    Discuss the relationship between interest rates and bond prices? When must the yield to maturity of a bond equal the current yield? What makes some bonds sell at a premium while others sell at a discount?

    Discuss how to use the tables to determine Present and Future Values, or Present Value and Future Annuities.

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    Please see the attached file.

    Discuss the relationship between interest rates and bond prices? When must the yield to maturity of a bond equal the current yield? What makes some bonds sell at a premium while others sell at a discount?

    Discuss how to use the tables to determine Present and Future Values, or Present Value and Future ...

    Solution Summary

    In 196 words, this solution gives a brief discussion in regards to the relationship between interest rates and bond prices, the yield to maturity of a bond and the current yield, bond prices, and how to use tables to determine present and future values/annuities.

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