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If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at a:_____ a. discount. b. par. c. either a discount d. 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 a:_____

a. discount.
b. par.
c. either a discount
d. premium.

User Ankit Makwana
by
4.7k points

1 Answer

3 votes

Answer:

a. discount.

Step-by-step explanation:

When market interest is higher than stated interest rate means the bond is selling cheap which means something which is fetching a better rate in the market is being offered to us at a lower return which would require it to sell at discount to attract investors.

User JdGhuman
by
4.9k points
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