Ask Question
BusinessBusiness
5 March, 15:10

If the market rate of interest is greater than the contractual rate of interest, bonds will sell:

a. at a premium.

b. at face value.

c. at a discount.

d. only after the stated rate of interest is increased.

+5
Answers (1)
  1. 5 March, 15:27
    0
    c. at a discount.

    Explanation:

    If the market interest rate is greater than the contractual rate of interest, the bond will sell at a discount. It means that the bond is selling at a rate less than its par value.

    If the market interest rate is less than the contractual rate of interest, the bond will sell at a premium. It means that the bond is selling at a rate higher than its par value.

    If the market interest rate is equal to the contractual rate of interest, the bond will sell at par or at face value.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If the market rate of interest is greater than the contractual rate of interest, bonds will sell: a. at a premium. b. at face value. c. at ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If Joanna is risk averse, then Group of answer choices her utility function exhibits the property of decreasing utility. her utility function exhibits the property of increasing marginal utility.
Answers (1)
If tracking employees through technology is not illegal, why should megan be concerned if she is not involved in any misconduct?
Answers (1)
Which of the following is an example of a fiscal policy
Answers (2)
In its 2021 income statement, Cohen Corp. reported depreciation of $3,700,000 and interest revenue on municipal obligations of $700,000. Cohen reported depreciation of $5,500,000 on its 2021 income tax return.
Answers (1)
The utility of a good or service 1. is synonymous with usefulness. 2. is the satisfaction or pleasure one gets from consuming it. 3. is easy to quantify. 4. rarely varies from person to person.
Answers (1)
New Questions in Business
Many people have argued that an income tax should be "marriage neutral," that is, two people should pay the same total tax whether they are married or they are single.
Answers (1)
Which company developed the first commercially successful computer? a. ibm b. apple c. amazon d. microsoft
Answers (1)
One of the best networking traits you can develop is
Answers (1)
The Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. The old machinery originally cost $9,000 and had accumulated depreciation of $5,000.
Answers (1)
Which of these is an example of a tax on consumption?
Answers (1)
Home » Business » If the market rate of interest is greater than the contractual rate of interest, bonds will sell: a. at a premium. b. at face value. c. at a discount. d. only after the stated rate of interest is increased.
Sign Up Forgot Password?