Which of the Following Statements Is True

question 60

Multiple Choice

Which of the following statements is true?

• A) If a bond is sold "at a discount," the effective interest rate on the bond is lower than the stated interest rate.
• B) If a bond is sold between interest dates, it is necessary to record the interest accrued since the last payment date before sale.
• C) If a bond is sold "at a premium," the effective interest rate on the bond is higher than the stated interest rate.
• D) Bond price of 98 means that the yield rate is 98% of the stated rate.

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Definitions:

Economic Changes

Shifts or alterations in the economic environment, including variations in employment, inflation, and market dynamics that affect the economy.

Private Practice

A business, particularly in professions such as law, medicine, or psychology, operated by one or more individuals outside of a hospital or institutional setting.

Confidential Information

Sensitive data that is protected from unauthorized access to safeguard privacy or secrecy.

Boundaries

Limits or borders that define the space within which actions occur or the extent of acceptable behavior.