Busıness Fınance I Deneme Sınavı Sorusu #1138266

Even though coupon interest rates are fixed, bond values still fluctuate with the changes in market
interest rates. Which one of the following is the main reason for this?


calculation errors

fluctuations on the interest rate in the market

 market failures

transaction fees

intermediation commissions


Yanıt Açıklaması:

Even though coupon interest rates are fixed, bond values still fluctuate with the changes in market
interest rates. Bonds exhibit interest rate risk, which is the risk that the return from the bond will change according to changes in the interest rates.

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