If a Bond Has a Contract Rate of Interest of 6

question 267

Multiple Choice

If a bond has a contract rate of interest of 6%, but the discount rate of interest is 8%, the bond

• A) will sell at a discount (less than face value).
• B) will sell at a premium (more than face value).
• C) may sell at either a premium or a discount.
• D) will sell at its face value.

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External Source

An entity or resource outside of an organization that provides information, materials, or services.

Operating Efficiencies

Refers to the ability of an organization to minimize costs and resource use while maximizing output and productivity.

Government Regulations

Rules and standards established by governmental bodies that are meant to control and guide the activities of various industries and organizations.

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The structures and patterns of work, including hours, location, and contractual terms.