Karen holds a $100 bond that pays $10 per year in interest. The minimum price Karen would have to be offered before she would sell the bond

Question

Quizplus · Accepted Answer

The minimum price Karen would accept for her bond depends on the rates of return available from other investments with similar risk profiles. If she can find a better return elsewhere, she might sell the bond for less than its face value or the accumulated interest. Conversely, if other investments offer lower returns, she might require a higher price to part with her bond.

Karen Holds a $100 Bond That Pays $10 Per Year