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melomori [17]
3 years ago
9

A bond will sell at a premium when its coupon interest rate: is lower than the market interest rate on similar bonds. equals the

market interest rate on similar bonds. varies more than the market interest rate on similar bonds. exceeds the market interest rate on similar bonds
Business
1 answer:
DiKsa [7]3 years ago
8 0

A bond will sell at premium when its coupon interest rate <u>exceeds the market interest rate on similar bonds.</u>

Explanation:

Premium bonds are the bonds that are trading above par in the market. Further on the bond would trade on premium only when it offers a coupon rate exceeding the market rate that is being offered on similar bonds.

In simple lay man's language, the term premium and discount can be understood to carry a crude definition of high and low demand. When the demand would be high, the bonds would fetch a higher value and vice-versa.

Thus Bonds would highly be valued when it is paying interest that is greater than the interest prevailing in the market contemporarily.

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You need to have $33,250 in 11 years. You can earn an annual interest rate of 4 percent for the first 6 years, and 4.6 percent f
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Answer:

$11,667.91

Explanation:

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5 0
3 years ago
Marvin and maria start selling handmade jewelry to distributors nationwide, and intend to form an llc. marvin and maria enter in
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6 0
3 years ago
The Widget Co. purchased all of its fixed assets three years ago for $6 million. These assets can be sold today for $3 million.
oksano4ka [1.4K]

Answer:

$4,800,000

Explanation:

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8 0
3 years ago
Keyboarding or typing 100 words per minute can be thought of as a?
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Answer:

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4 0
3 years ago
Read 2 more answers
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