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A Bond's Par Value Is the Same as Market Value

question 13

True/False

A bond's par value is the same as market value.


Definitions:

Contract Rate

The predetermined fee or rate agreed upon in a contract for services rendered or goods sold.

Bonds

Long-term debt securities issued by corporations or governments to raise capital, paying interest to holders.

Premium

A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par to record the premium received.

Discount

A reduction in the price of goods or services, often used as a sales promotion or to encourage early payment.

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