Ask Question
31 January, 10:00

If the market interest rate remains at 5% for the next 29 years, and if Leggio's credit rating remains constant, then the price of its bonds will decrease gradually over time and be exactly $1,000 at maturity. True or false

+3
Answers (1)
  1. 31 January, 12:15
    0
    Answer: True

    Explanation:

    A bond is a debt tool that provides a periodic stream of interest payments to investors while repaying the principal sum on a specified maturity time.

    In the U. S., the face value is usually $1,000 or a multiple of $1,000. Hence as the credit value remains constant over the span of the 29 years, the bond keeps decreasing.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If the market interest rate remains at 5% for the next 29 years, and if Leggio's credit rating remains constant, then the price of its ...” 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