need help with accounting/finance

Accounting
Tutor: None Selected Time limit: 1 Day

If bonds are sold between interest payment dates, the amount of cash the issuer receives is
A. more than the market value of the bonds.
   
B. less than the market value of the bonds.
   
D. equal to the face value of the bonds.

May 6th, 2015

Bond as a debt instrument , u have to consider factors that affected the bond sold is interest rates? maturity?  ,  bonds are more inversely with interest rates, so the bond that has not reached the 'coupon" date cant be sold to gain cash like face value which is subject only to maturity. the best answer is more than the market value of the bond.Its because an investor cannot decide to sell  a  bond  that haven't matured at a lower price. Thank you

May 6th, 2015

A IS THE CORRECT ANSWER

May 6th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
May 6th, 2015
...
May 6th, 2015
Dec 3rd, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer