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Busıness Fınance I
Busıness Fınance I Deneme Sınavı
Busıness Fınance I Deneme Sınavı Sorusu #851050
Busıness Fınance I Deneme Sınavı Sorusu #851050
I. Bonds sell at their par value.
II. Bonds sell above their par value.
III. Bonds sell below their par value.
What happens when the market interest rate is equal to the coupon interest rate?
Only I |
Only II |
Only III |
I and II |
I and III |
Yanıt Açıklaması:
When the market interest rate is equal to the coupon interest rate, bonds sell at their par value. When the market interest rate is below the coupon interest rate, bonds sell above their par value and they are called premium bonds. When the market interest rate exceeds the coupon interest rate, bonds sell below their par and are called discount bonds.
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