When the contract rate of the bonds is higher than the market rate, the bond sells at a higher price than par value. The amount

Question

2 years ago

9

by which the bond price exceeds par value is the _______ on bonds.

1 answer:

WITCHER [35] · Answer 1 · 2023-06-03T09:46:35+03:00

The amount by which the bond price exceeds par value is the added on bonds.

It represent and agreement between the borrower and the lender usually given on loan.

Bond is usually in written form and it is a legal binding between the parties involved.

Therefore, The amount by which the bond price exceeds par value is the added on bonds.

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