Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
Valuation models of Debt and Equity I understand mathematically the equation that connects the present value of the bond to its maturity value and to...
Valuation models of Debt and Equity
I understand mathematically the equation that connects the present value of the bond to its maturity value and to the interest rate. But I don't understand the whole meaning behind it. Could someone explain? Also, who benefits more from rises in interest rates, the investors or the issuers? Thanks.