Ask Question
25 July, 16:39

Investors willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn on similar bonds (market rate).

True / False.

+4
Answers (1)
  1. 25 July, 17:11
    0
    The correct answer is False.

    Explanation:

    The above statement is related to the bonds issued at a discount, where in the proposed scenario, the bonds will only be sold at a discount when the market interest rate is higher than that of the contract. When the opposite happens, the operation cannot be performed, since no benefits would be obtained.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Investors willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn on similar ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers