When the contract rate of the bonds is higher than the market rate, the bond sells at a higher price than par value. The amount by which the bond price exceeds par value is the _______ on bonds.

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05-05-2022
Business

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When the contract rate of the bonds is higher than the market rate, the bond sells at a higher price than par value. The amount by which the bond price exceeds par value is the _______ on bonds.

Sagot :

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mboluwape mboluwape · Answer 1 · 2022-05-13T05:49:14-04:00

The amount by which the bond price exceeds par value is the added on bonds.

What is a bond?

It represent and agreement between the borrower and the lender usually given on loan.

Bond is usually in written form and it is a legal binding between the parties involved.

Therefore, The amount by which the bond price exceeds par value is the added on bonds.

Learn more on bond here,

https://brainly.com/question/25965295

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When the contract rate of the bonds is higher than the market rate, the bond sells at a higher price than par value. The amount by which the bond price exceeds par value is the _______ on bonds.

Sagot :

What is a bond?

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