(I) The coupon rate is the rate of interest that the issuer of the bond must pay

(II) The coupon rate on old bonds fluctuates with market interest rates so they will remain attractive to investors.

A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.

A

Business

You might also like to view...

Contracts involving fraud in inducement are not voidable

Indicate whether the statement is true or false

View
Business

The declaration of a cash dividend causes an increase in a corporation's liabilities at the date of declaration

Indicate whether the statement is true or false

View
Business