question archive If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at either a discount or premium
If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at either a discount or premium
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If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at
either a discount or premium.
a premium.
a discount.
par.
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Answer:
When market interest is higher than stated interest rate means the bond is selling cheap which means something which is fetching a beter rate in the market is being offered to us at a lower return which would require it to sell at discount to attract investors. So option c is correct
