Friday, January 22, 2010

High Rate Bonds When The Contract Rate Of Interest On Bonds Is Higher Than The Market Rate Of Interest, The Bonds Sell At:?

When the contract rate of interest on bonds is higher than the market rate of interest, the bonds sell at:? - high rate bonds

If the interest rate on the obligations of the contract between the interest rate exceeds the market, bonds are sold with:

a premium
b. Face Value
c. their value at maturity
d. Discounts

2 comments:

The Chad said...

A - as market prices decline in interest-bearing bonds (so-called contract was in this example), the value of bonds

Thor said...

Prima A.

This would be a bonus for the face value.

As the interest rate is lower than the market premium pay (extra premium) for the owner to leave the interest rate.

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