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- When it comes to bond values, what role do interest rates play? How can you value a bond if you don't know what the fundamental assumptions are.What is the relationship between the PV and the market interest rate? Does a lower market rate impact the price of the bond? Why?Why do noninvestment-grade bonds have much higher direct costs than investment-grade issues?
- what is the difference between an investment grade bond and a junk bond?How does collateral affect the interest rate on a bond? How does subordination affect the interest rate on a bond too? What else might affect the interest rate on a bond?What effect does collateral have on a bond's interest rate? What effect does subordination have on a bond's interest rate? What other factors might alter a bond's interest rate?