Answered

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You've decided to sell a bond before its maturity date. Interest rates are currently higher than when you bought the bond. What will you likely have to do to make your bond more appealing to investors?

A. Lower the interest rate
B. Sell your bond at a discounted price
C. Increase the interest rate
D. Sell your bond at a higher price

Sagot :

GinnyAnswer

Final answer:

To make a bond more appealing when interest rates rise, selling it at a discounted price is a common strategy.


Explanation:

When interest rates are higher than when the bond was purchased, to make the bond more appealing to investors, the seller will likely b. Sell the bond at a discounted price. This is because if interest rates have risen, the fixed interest rate of the bond becomes less attractive, so selling at a lower price with a higher effective interest rate can attract potential buyers.


Learn more about bond pricing here:

https://brainly.com/question/15518377


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