Which Item Listed Below Does Not Influence the Issue Price

question 46

Multiple Choice

Which item listed below does not influence the issue price (present value) of a bond?

• A) The reason the bond was issued
• B) The dollar amounts to be received
• C) The length of time until the amounts are received
• D) The market rate of interest

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Definitions:

Effective Offer

A proposal that meets all legal requirements and is presented in a manner that a reasonable person would understand its terms, triggering a potential contract.

Good Faith

The honest intention to act without taking an unfair advantage over another party in a transaction.

Reasonableness

The quality of being moderate, fair, and sensible in judgment or expectations, often evaluated in legal contexts.

Offeror's Intention

The specific intent by the person making an offer in a contract to be bound by the offer if it is accepted by the offeree.