If The Market Rate Of Interest Is Greater Than The Contractual Rate Of Interest, Bonds Will Sell

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If the market rate of interest is greater than the contractual rate of interest bonds will sell a at a premium bat face value cat a discount d only after the stated rate of interest is increased. As a result investors who.

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At a discount b.

If the market rate of interest is greater than the contractual rate of interest, bonds will sell. Gomez Corporation issues 1000 10-year 8 1000 bonds dated January 1 2008 at 98. At face value C. The interest expense recorded on an interest payment date is increased A.

Only after the stated rate of interest is increased c. If the market rate of interest is greater than the contractual rate of interest bonds will sell a. By the amortization of premium on.

It can be determined whether the bonds will sell for more than less than or at their face amount. The bonds will sell for more than their face amount. Get the detailed answer.

If the market rate of interest is greater than the contractual rate of interest bonds will sell A. Contractual interest rate is greater than the market interest rate. When the contract rate of interest on bonds is higher than the market rate of interest the bonds sell at.

Only after the stated rate of interest is increased. If the market rate of interest is greater than the contractual rate of interest bonds will sell a. The interest expense recorded on an interest payment date is increased.

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If the market interest rate is greater than the contractual interest rate bonds will sell. If the market and contract interest rates are equal a bond will sell at par value. The rate determined from sales and purchases of similar bonds.

By signing up youll get thousands of. Only after the stated rate of interest is increased. If the contract rate is less than the market rate the bond will sell at an amount less than face this is known as a discount.

The market rate of interest is often called the. None of these choices are correct. To attract investors and compensate.

Their face value c. The bonds will sell for less than their face amount. Their maturity value d.

If the market rate of interest is more that the contractual rate of interest this means that investors have better options available in comparison to the bonds. There is a greater probability that interest rates will rise and thus negatively affect a bonds market price within a longer time period than within a shorter period. Most bonds pay a fixed interest rate that becomes more attractive if interest rates fall driving up demand and the price of the bond.

Contractual interest rate is less than the market interest rate. If the contract rate is greater than the market rate the bond will sell at an amount greater than face this is known as a premium. If the market rate of interest is greater than the contractual rate of interest bonds will sell A.

When the market rate of interest on bonds is higher than the contract rate the bonds will sell at a discount On January 1 2000000 5-year 10 bonds were issued for 1960000. As a discount D. If the market rate of interest is greater than the contractual rate of interest bonds will sell at.

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The bonds will sell for their face amount. If the market rate of interest is greater than the contract rate of interest a. At a premium d.

If the market rate of interest is greater than the contractual rate of interest bonds will sell at what. At a premium B. If the market interest rate is greater than the contractual interest rate bonds will sell a.

Conversely if interest rates rise investors will no longer. Only if the market rate of interest is less than the stated rate of B. Contractual interest rate is equal to the market interest rate.

Only after the stated interest rate is increased. The market rate of interest is affected by a variety of factors including investors expectations of current and future economic conditions. Only after the stated rate of interest is increased.

If the market rate of interest is 10 a 10000 12 10-year bond that pays interest semiannually would sell at an amount greater than face value.

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