A bond with a fixed coupon has the following relationship with the market required return other things being equal:

Name: A bond with a fixed coupon has the following relationship with the market required return other things being equal:
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Question

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The price of a bond with a fixed coupon rate has a negative relationship with the market required return (or interest rates). When market interest rates rise, the price of existing bonds falls to adjust the yield upwards to match the new market rates, and vice versa.

A Bond with a Fixed Coupon Has the Following Relationship