Two factors determine the price of a bond: _____ and _____.
A)risk; interest rate
B)market; risk
C)interest rate; call provision
D)price of other bonds; the company selling the bond

Question

Quizplus · Accepted Answer

The price of a bond is primarily determined by its risk (which affects the interest rate or yield required by investors to compensate for that risk) and the prevailing interest rates in the market. Higher risk typically leads to higher required yields, and as market interest rates rise, the prices of existing bonds tend to fall (and vice versa).

Two Factors Determine the Price of a Bond: _____ and _____

Two Factors Determine the Price of a Bond: _ and _