I'm learning about fixed income for the first time and my understanding is that the value of a bond depends on three major variables:
- The face value
- The time to maturity
- The coupon rate a.k.a. the interest rate paid semi-annually or annually
That's fine, but I also understand that they are traded on the secondary market. Making an analogy to stocks and dividends distributions, is it the case that the market value of a bond usually goes up before the date when a coupon payment is made?