answersLogoWhite

0

Add your answer:

Earn +20 pts
Q: An investor purchases a company and bond from two years ago with a lower coupon rate than this year and bond. Why would the investor want to buy a lower-interest bond in the secondary market?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How do you start a company that purchases stock in other companies?

You can incorporate a business under your own name (ar any chosen name not belonging to another company), or even buy stock in other companies as an individual investor (just on you own!).


How does an investor get ownership interest in a company?

by purchasing shares in the company


The word investor how can it be used in a sentence?

The company I work for proudly prints the logo 'Investor in People' on its letterheads. I was an investor in Railtrack and lost all my money when they went bust. Christine Smyth is the investor relations contact at Kwik Goo, the sticky glue company.


Who was an Early investor in Disneyland?

ABC-TV company


How does insider trading benefit the investor?

Insider trading is trading done by company officials that have inside information about the status of their company. They have advance notice of new products, company sales and other information not available to the general investor until they make it public. They can buy and sell stock in their company only if their purchases are immediately made public. Insiders buying stock in their company may be a sign that good news is coming. Insiders selling may be a sign that bad news is coming or that maybe the insider is buying a new boat. Worth looking at when evaluating a stock purchase.


What are shares?

A share in a company gives you as an investor a share in its dividend.


Who investor in a company?

An investor is any party who makes investment, can be anyone or a company as a whole!! say if u have some amount then you can regularly purchase equity or debt securities for financial gain in exchange for funding an expanding company.


What is the relationship between shareholders and managers?

When you hold a share of a company, you are an investor in the company. You have invested your money in the company and it is the prime goal of the company's management to ensure that they earn sufficient revenue and profit for you "the investor" who has invested in the company. Ideally speaking, shareholders can be considered as owners of the company and the managers can be considered as employees working for the company.


Would it be illegal to pose as an investor to get into a company's closed meeting?

No, it's not.


How does a pension act as an investor?

the company invests money collected from employers


How is an institutional investor different from an individual investor?

An individual investor is a person, like you or me. In this example, assume we are each a rowboat in the ocean. An institutional investor is a business. It may be a mutual fund company. It may be a company that manages the retirement fund for teachers in your state. In this example, assume the institutional investor is an ocean liner. Now think of the rowboat and the ocean liner. Which makes the bigger wave? Which affects the other? Which can withstand a storm better?


Is an investor the same as a shareholder?

Nearly yes. An investor for a company is someone who has invested in the company. He may be someone who bought Bonds issued by them or equity shares issued by them. If he has bought equity shares from them, then they are both same.