Question

Loptech, a technology firm, wants to issue bonds for investment purposes. Loptech has one of the best credit ratings in the industry. Market rates for debt instruments average at .5% interest. Based on its credit rating, Loptech would likely sell bonds that pay _____.

Answer 1

Answer:less than 5% or equal to 5%

Step-by-step explanation:

Due to it's high credit rating the populace will have confidence in him and it will not need to increase it's rate to attract investors.

This is similar to a government issuing treasury bill which rate of return will be less than the banks or other similar institution