Why Are Bonds Sometimes Issued at a Discount

question 27

Multiple Choice

Why are bonds sometimes issued at a discount?

• A)The stated rate of interest is higher than the rate being paid on investments in the securities market with comparable risk.
• B)The stated rate of interest is the same as the rate being paid on investments in the securities market with comparable risk.
• C)The stated rate of interest is lower than the rate being paid on investments in the securities market with comparable risk.
• D)The bonds are being issued between interest payment dates.

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