If the Market Interest Rate Is Higher Than the Face

question 138

Multiple Choice

If the market interest rate is higher than the face interest rate at the date of issuance,bonds will

• A) not sell until the face interest rate is adjusted.
• B) sell at face value.
• C) sell at a discount.
• D) sell at a premium.

---

Definitions:

Labor Surplus

A situation where the supply of labor exceeds the demand for it, typically leading to higher unemployment rates.

Downsizing

The act of reducing the number of employees within a company, typically to cut costs or improve efficiency.

Natural Attrition

The reduction in workforce size through normal means, such as retirement or resignation, without the need for layoffs.

Labor Shortage

A situation where there are not enough qualified candidates to fill the available job positions within a market or industry.