Name four variables that affect a bond's price. Which ones, if any, have an inverse effect on the bond's price? That is, for which variables does a lower value of the variable result in a higher bond price?

Question

Quizplus · Accepted Answer

The Answer is Four variables affecting a bond's price are:
-the time remaining until maturity of the bond
-the prevailing market rate of return on bonds
-the bond's coupon rate
-the face value of the bond
Only the prevailing market rate of return always has an inverse effect on the bond's price.

Name Four Variables That Affect a Bond's Price