Which one of the following bond values will change when interest rates change?
A) The expected cash flows
B) The present value
C) The coupon payment
D) The maturity value

Question

Quizplus · Accepted Answer

The present value of a bond is calculated using the current interest rate. As interest rates change, the present value of the bond will also change. The expected cash flows, coupon payment, and maturity value are predetermined and do not change with fluctuations in interest rates.

Which One of the Following Bond Values Will Change When