If a Debenture's Stated Interest Rate Is the Same as the Market

question 30

Multiple Choice

If a debenture's stated interest rate is the same as the market rate,which of the following is TRUE?

• A)The debenture will be issued at a discount.
• B)The debenture will be issued at a premium.
• C)The debenture will be issued at par.
• D)The debenture will be issued for an amount lower than the maturity value.

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