A Debenture Will Be Issued at Par Value

question 52

Multiple Choice

A debenture will be issued at par value:

• A) because that is the offer price; if the rate offered is too low the offer will be under-subscribed, so those who take it up will receive more interest.
• B) on most occasions, because management is careful to issue the debentures at an amount close to the market rate.
• C) on those rare occasions when the coupon rate is the same as the market rate.
• D) on those occasions when the offer rate is equal to the coupon rate.

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Definitions:

Stress Reactions

The physical, emotional, and behavioral responses of individuals to stressors in their environment.

Workaholics

Individuals who compulsively work long hours, often to the detriment of their personal life and health.

Heavy Workloads

A situation where the amount of work assigned exceeds the normal capacity of an individual or group, leading to stress and potential burnout.

Long Work Hours

Extended periods of working time that exceed the standard workday, often leading to stress and health issues.