How are bond prices determined in the market? What is the
relationship between interest rates and bond prices? Have you ever
purchased a bond? If so, what was your experience with the purchase
price and the value of the bond over time? Explain the different
type of risk that a bond investor and issuer face. How does a
bond's term and collateral changed to affect its interest rate?
1. How are bond prices determined in the market? What is the
relationship between interest rates and bond prices? Have you ever
purchased a bond? If so, what was your experience with the purchase
price and the value of the bond over time?
Numerous companies are using the value-based pricing approach in
establishing their pricing strategies. How would you define the
value-based pricing approach? What are the main differences between
the cost-based pricing and the value-based pricing approach?