The Value of a Bond Investment,which Provides Fixed Interest Payments,will

question 98

True/False

The value of a bond investment,which provides fixed interest payments,will increase when discounted at a 8% rate rather than at a 11% rate.

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Definitions:

Incidental Beneficiary

A party who indirectly benefits from a contract but has no legal right to enforce the agreement made between other parties.

Donee Beneficiary

A third party that benefits from a contract between two other parties, to whom the promisor's performance is a gift.

Promisee

The individual or entity to whom a promise is made and who stands to benefit from the fulfillment of that promise.

Creditor Beneficiary

An individual or entity that benefits from a contract made between two other parties because of a debt owed to them.