Why is the coupon rate irrelevant in determining the price o

Why is the coupon rate irrelevant in determining the price of a previously issued bond? What factors are important in determining the price of a previously issued bond?

Solution

For the previously issued bond, its price gets changed by the change in interest rate in the market. If interest rate rises , bond price Decreases and vice versa

Coupon rate doesn\'t affects the bond price and moreover it remains constant from issuing to maturity .