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An investor should buy a bond when the intrinsic value of the bond is greater than its market value. The intrinsic value of a bond represents its true worth or fair value based on factors such as the bond's cash flows, interest rates, credit quality, and other relevant market conditions. If the intrinsic value of a bond is higher than its current market value, it suggests that the bond is undervalued and has the potential to provide a favorable return on investment. By purchasing the bond at a price lower than its intrinsic value, the investor can benefit from capital appreciation and potential income through coupon payments.
What is the liability of partners in a general partnership under the Partnership Act?
What are the types of Guarantees?
On a bill of exchange payable at a fixed time after date, the period of limitation begins to run
What does the principle of novus actus interveniens refer to in tort law?
Who among the following holds office during the pleasure of the President?
When is criminal conspiracy said to be done by a person?
Quid Pro Quo means_____________________
The positivist school postulates that
Where there is more than one conciliator, what is the general rule regarding their action?
Right to equality is covered under which of the following Articles of the Constitution?