Your Company Sells $50,000 of Bonds for an Issue Price

question 218

Multiple Choice

Your company sells $50,000 of bonds for an issue price of $48,000.Which of the following statements is correct?

• A)The bond sold at a price of 96,implying a discount of $4,000.
• B)The bond sold at a price of 48,implying a premium of $2,000.
• C)The bond sold at a price of 48,implying a premium of $4,000.
• D)The bond sold at a price of 96,implying a discount of $2,000.

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Definitions:

Planned Change

A deliberate effort to improve a business or system through intentional interventions and strategies.

Overwhelmed

A state of feeling unable to cope due to excessive pressures or demands.

System

A set of interacting or interdependent components forming an integrated whole or a set of principles or procedures according to which something is done.

Rational Persuasion

Rational persuasion involves convincing others to change their attitudes or behaviors through logical arguments and factual evidence.