Using The Bond Formula P C 1 1 1 I N I M 1 I N What S The Bond Relationship An

using the bond formula P = C [1 – 1/(1+i)n]/i  + M/(1+i)n

  1. what’s the bond relationship and why it works in this statement: “The value of a bond is inversely related to changes in the investor’s present required rate of return (the current interest rate).”