What is the relation between the market interest rate and the bond issue price? Include descriptions of bond discount and premium in your explanation
What will be an ideal response?
The bond issue price is inversely related to the market interest rate. As the market rate of interest increases, the bond's value falls. If the market rate exceeds the coupon rate, then the bond sells for a discount. If the market rate is less than the coupon rate, then the bond sells for a premium.
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A broker who has done a proper CMA, discusses the probable market value of the property with the seller, and the seller wants an unrealistic price on the property all of the following are true EXCEPT
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