The Market Rate of Interest for a Bond Issue Which

question 73

Multiple Choice

The market rate of interest for a bond issue which sells for more than its face value is

• A) independent of the interest rate stated on the bond.
• B) higher than the interest rate stated on the bond.
• C) equal to the interest rate stated on the bond.
• D) less than the interest rate stated on the bond.

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Definitions:

Building Site

A piece of land that has been selected and prepared for the construction of a building.