Investors will be willing to pay more than the par value for bonds when the market rate of interest is higher than the contract rate of interest. ( )
举一反三
- When bonds become more widely traded, and as a consequence the market becomes more liquid, the demand curve for bonds shifts to the _________ and the interest rate _________.
- According to the interest rate parity theory, when the forward foreign exchange rate is premium, it means that the domestic interest rate( ) A: is equal to the foreign exchange rate B: lower than foreign exchange rates C: higher than foreign exchange rates D: Not sure
- Bonds with a maturity that is longer than the holding period have no interest - rate risk.
- The interest rate of current account is usually higher than saving account.
- 中国大学MOOC: Assume that the interest rate in the home country of Currency X is much higher than the U.S. interest rate. According to interest rate parity, the forward rate of Currency X: