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elena55 [62]
3 years ago
13

An investor purchases a company’s bond from two years ago with a lower coupon rate than this year’s bond. Why would the investor

want to buy a lower-interest bond in the secondary market?
Social Studies
2 answers:
Mandarinka [93]3 years ago
6 0

Answer:

opportunity to negotiate a lower par value to offset the lower interest rate.

Explanation:

correct on gradpoint

Feliz [49]3 years ago
5 0
This investor would want to buy a lower interest bond in the secondary market because of the <span>opportunity to negotiate a lower par value to offset the lower interest rate.
If there is a lower value, there is a lower interest rate, which is what this investor is interested in.
</span>
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