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antiseptic1488 [7]
3 years ago
11

If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at:__________

Business
1 answer:
Gwar [14]3 years ago
5 0

Answer:

a. a discount

Explanation:

Options are <em>"a. a discount. b. a premium, c. par, d. either a discount or premium"</em>

If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at <u>a discount.</u> If Bond Coupon rate (Stated Interest rate) is Lower than YTM (Market Interest Rate) or YTM > Coupon rate Then Bond is selling at a Discount.

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