If the Interest Rate on Bonds Is Higher Than the Current

question 7

Multiple Choice

If the interest rate on bonds is higher than the current market rate, they will sell at

• A) a discount.
• B) a premium.
• C) face value.
• D) maturity value.

---

Definitions:

Anion

A negatively charged ion, which is formed when an atom gains one or more electrons.

KCN

Potassium cyanide, a highly toxic compound that can release cyanide ions in solution, used in various industrial processes and, historically, in gold mining.

CN-

The cyanide ion, a negatively charged molecule consisting of one carbon and one nitrogen atom, known for its high toxicity.

Cations

Positively charged ions that are formed when an atom loses one or more electrons.