Interest rates play a prominent role in calculation, and determination of bond prices, and yields. Let's...

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Finance

Interest rates play a prominent role in calculation, anddetermination of bond prices, and yields. Let's discuss why, andwhat factors need to be addressed with this. Use examples.

In addition, let's not forget what factors affect the valuation ofcommon stock. Use examples.

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Interest rates plays a prominent role in the determination of bond prices as well as yields interest payments is basically the amount that a individual pays for the use of others money and therefore if the rate of interest will be higher the use of money will become more expensive There is a inverse relationship between bond prices and interest rates If the rate of interest go down the bond prices will go up and vice versa A bond comes up with a periodic See Answer

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