When the contract rate of interest on bonds is higher than the marketplace rate of interest, the bonds sell at:
a premium
b. their facade value
c. their readiness value
d. a discount
Answers: a - as souk rates decline as compared to the bond's coupon rate (referred to as contract rate in this example), the bond increases surrounded by value
A. premium
That would be a "premium" to the frontage value.
Since the bazaar rate of interest is lower than the bond's rate you must pay extra (the premium) to procure the owner to give up the high interest.
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a premium
b. their facade value
c. their readiness value
d. a discount
Is it worth it to invest on an online business?
Answers: a - as souk rates decline as compared to the bond's coupon rate (referred to as contract rate in this example), the bond increases surrounded by value
When would be a virtuous time to invest surrounded by 'junk' bonds during the business cycle?
A. premium
That would be a "premium" to the frontage value.
Since the bazaar rate of interest is lower than the bond's rate you must pay extra (the premium) to procure the owner to give up the high interest.
Resolved Questions: