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8. When a bond sells at a premium: The contract rate is above the market rate. The contract rate is equal to the market rate.
8.
When a bond sells at a premium:
The contract rate is above the market rate.The contract rate is equal to the market rate.The contract rate is below the market rate.It means that the bond is a zero coupon bond.The bond pays no interest.
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Law, Business And Society
Authors: Tony McAdams, Kiren Dosanjh Zucker, Kristofer Neslund, Kari Smoker
12th Edition
1259721884, 978-1259721885
