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1.What is the relationship between interest rate level and bond price? Why must this relationship be...

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Accounting

1.What is the relationship between interest rate level and bondprice? Why must this relationship be true? How has the current rateenvironment impacted the prices of bonds?

2. What are some factors to consider in evaluating a company'sability to make payments on outstanding debt? Please explain thefactors rather than just providing a list.

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Answer to Question No 1 There is a inverse relationship between interest rate level and bond pricemeaning thereby when the interest rate increases the bond price goes down Similarlywhen the interest rate decreases the bond price goes up This relationship is    See Answer
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