If a bond has a 5% coupon rate and the market interest rates is 6%, then the bond will be sold:?
April 15th, 2008 · 1 Comment
W. At a zero dollar price.
X. At a premium.
Y. At its face value.
Z. At a discount.
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1 response so far ↓
1 skn8700 // Apr 15, 2008
Who needs a bond that pays less than the prevailing interest rate ?
ANS: Z. At a discount..
By the way, What is at "Zero Dollar price" ?
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