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