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QUESTION

using the bond formula P = C [1 - 1/(1+i) n ]/i + M/(1+i) n what's the bond relationship and why it works in this statement:

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)." 
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