If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually would sell at an amount:
A) Less than face value
B) Equal to the face value
C) Greater than face value
D) That cannot be determined
Answer: C
If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually would sell at an amount:
A) Less than face value
B) Equal to the face value
C) Greater than face value
D) That cannot be determined
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.