If the market rate of interst is 10%, a $1,000, 12%, 10-year bond that pays interest semiannually would sell at:
a. a premium
b. a discount
c. face value
d. more information is needed
a premium
Explanation: in bonds offer interest rate more than the market interest rate then generally bonds are issued at premium.
Option a. is correct answer.
If the market rate of interst is 10%, a $1,000, 12%, 10-year bond that pays interest semiannually would sell at: a. a pr...
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