Asked by Courtney Morris on Jun 05, 2024
Verified
Bond sales tend to be higher when interest rates are lower.
Lower
To reduce in height, intensity, or amount.
Bond Sales
The process of selling debt securities or bonds to investors as a way of raising capital for governmental bodies or corporations.
Interest Rates
The cost of borrowing money or the return on savings, usually expressed as a percentage.
- Familiarize yourself with the unique qualities and outcomes of different corporate finance avenues, notably trade credit and debt financing.
Verified Answer
JR
Jacob RosalesJun 07, 2024
Final Answer :
True
Explanation :
When interest rates are lower, bonds issued previously with higher interest rates become more attractive to investors, leading to higher sales of these bonds in the secondary market. Additionally, new bonds are issued at these lower rates, which can be appealing to investors seeking to lock in rates before any potential increases.
Learning Objectives
- Familiarize yourself with the unique qualities and outcomes of different corporate finance avenues, notably trade credit and debt financing.
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