Answer:
b.market interest rate is higher than the contractual interest rate.
Explanation:
A bond sold at a price below its face value is said to be issued at a discount. An investor pays a price that is lower than they will claim at maturity. For example, a bond with a face value of $ 1000 and trades at $ 950 is trading at a discount.
Bonds are issued at a discount when the prevailing market interest rate is higher than the interest rate the bond is offering. A bond interest rate or coupon rate defines its attractiveness to investors. If the coupon rate is higher than the market rate, the bond will be in great demand. But if the coupon rate is lower than the market, the bond will be less attractive to investors. In such a scenario, the bond is issued at a discount to attract investors.
Answer:
Store of wealth
Explanation:
Store of wealth means that money retains it value and purchasing power over time. Thus, it can be stored or kept away and used sometime in the future without money losing its value.
Other functions of money are :
1. Medium of exchange: money can be used to exchange for goods and services in transactions.
2. Unit of account: money can be used to determine the value of goods and services being exchanged.
I hope my answer helps you
<em><u>Loan L</u></em> would be best for Craig that has a nominal rate of 8.254% that is compounded daily a sit gives an<u> effective rate of interest</u> as 117.95.
The formula for <u>computing compounded rate</u> of interest is given as follows:
The effective rate of interest for loan L as per the above formula would be:
The effective rate for loan M would be:
The effective rate for loan N would be:
The effective rate for loan O would be:
Learn more about the effective rate of interest here:
brainly.com/question/1398822
The correct answer is the suspension stability system. This
is defined as a kind of detection by which it detects driving conditions by
means of lowering or raising the vehicle’s wheel that makes the ride more
leveled or more smoother.