If the Market Interest Rate Is Greater Than the Face

question 171

True/False

If the market interest rate is greater than the face rate of interest on a bond, the bond will sell at a premium.

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Definitions:

Price Range

The spread between the highest and lowest selling price of a good or service in a particular market over a certain period of time.

Supply

The total amount of a product or service that is available for purchase at a given price over a specific time period.

Perfectly Inelastic

A situation in demand where the quantity demanded does not change in response to changes in price.

Quantity Supplied

Quantity supplied is the amount of a good or service that producers are willing and able to sell at a certain price over a given period.