How would the present value of a bond be affected if the, Finance Basics

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How would the present value of a bond be affected if the

Sensitivity of Bond Values

a. How would the present value (and therefore the market value) of a bond be affected if the coupon payments are smaller and other factors remain constant?

b. How would the present value (and therefore the market value) of a bond be affected if the required rate of return is smaller and other factors remain constant?

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Finance Basics: How would the present value of a bond be affected if the

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