When the Market Rate of Interest on the Date Bonds

question 55

Multiple Choice

When the market rate of interest on the date bonds are issued is higher than the face rate of interest on the bonds:

• A)the proceeds from the issuance of the bonds will be greater than the face value of the bonds
• B)the bonds are issued at a premium
• C)the bonds are issued at a discount
• D)both a and c are correct

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