Prevailing market rate of interest on similar bonds

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Reference no: EM132002134

1. When a bond’s coupon rate is less than the prevailing market rate of interest on similar bonds, will the bond sell at par, a discount, or a premium? Why?

2. Before a bill passed by Congress becomes the law of the land what must happen?

a. The bill must be reviewed by the U.S. Supreme Court

b. The bill must be passed by a 2/3 vote of both houses

c. The President must sign the bill

d. The President must sign the bill and send it back to the Senate for confirmation.

Reference no: EM132002134

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