Asked by
stacy bratlien
on Nov 18, 2024
Verified
If bonds are issued at a premium, the stated interest rate is
A) higher than the market rate of interest
B) lower than the market rate of interest
C) too low to attract investors
D) adjusted to a higher rate of interest
Premium
An amount paid in addition to the standard cost or value, often for insurance, bonds, or the higher quality of a product or service.
Interest Rate
The fee, represented as a proportion of the principal, imposed by a lender on a borrower for utilizing assets.
- Ascertain the market factors that impact the prices of bonds, including the role of interest rates.
Verified Answer
MA
Learning Objectives
- Ascertain the market factors that impact the prices of bonds, including the role of interest rates.