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Tema [17]
3 years ago
13

Investors willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn

on similar bonds (market rate).
True / False.
Business
1 answer:
Mekhanik [1.2K]3 years ago
3 0

Answer:

The correct answer is False.

Explanation:

The above statement is related to the bonds issued at a discount, where in the proposed scenario, the bonds will only be sold at a discount when the market interest rate is higher than that of the contract. When the opposite happens, the operation cannot be performed, since no benefits would be obtained.

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