Ask Question
16 June, 06:10

An investor purchases a company's bond from two years ago with a lower coupon rate than this year's bond. Why would the investor want to buy a lower-interest bond in the secondary market?

+4
Answers (1)
  1. 16 June, 06:30
    0
    This investor would want to buy a lower interest bond in the secondary market because of the opportunity to negotiate a lower par value to offset the lower interest rate.

    If there is a lower value, there is a lower interest rate, which is what this investor is interested in.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “An investor purchases a company's bond from two years ago with a lower coupon rate than this year's bond. Why would the investor want to ...” in 📙 Social Studies 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