(Answered) Question - state and federal laws govern bond issuances

Accounting

Question - State and federal laws govern bond issuances. Bond issuers cannot violate any of the existing contractual agreements when issuing bonds. Authorization of bond issuances includes the number of bonds authorized, their par value, and the contract interest rate.

What are the contract rate and market rate for bonds? Why can they be different?

With these thoughts in mind: Post an initial statement by Day 3 that expresses your thoughts on the differences between the contract rate and market rate for bonds. The length of your response(s) should be a minimum of 150 words.

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