The market rate of interest will sell for a discount and, Ask an Expert

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We know that a vanilla bond that has a coupon rate which is below the market rate of interest will sell for a discount and that a vanilla bond which has a coupon rate above the market rate of interest will see for a premium. What kind of bond or loan will sell at its par value regardless of what happens to the market rate of interest?

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Financial Management, Finance

Category:- Financial Management
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