When the Market Rate of Interest Is Less Than the Contract

question 134

True/False

When the market rate of interest is less than the contract rate for a bond, the bond will sell for a premium.

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Definitions:

Inter-

Inter- is a prefix meaning between or among, indicating interaction or interconnectedness when used in compound words.

Between

in the interval separating (two points, objects, or times).

Prefix

An affix placed before the stem of a word to modify its meaning, such as "un-" in "unhappy" or "pre-" in "preview."

Before

Prior to in time or order.