Question

1. If market interest rates are higher than the rate offered on the bonds being sold, they will be sold at:
A. a premium.

B. a discount.

C. face value.

D. a loss.

Answer 1

which one would you choose?

Answer 2

face value?

Answer 3

no, but why would you have considered that one?

Answer 4

think of this as selling them for less than the market demands, so people are getting them "on sale".

Answer 5

I mean if the market rates are higher than the bonds I thought theyd stay the same

Answer 6

you talking about a discount?

Answer 7

yes

Answer 8

oh ok I see

Answer 9

thank you!

Answer 10

good luck :)