A Debenture Is Sold for an Amount Equal to Its

question 46

Multiple Choice

A debenture is sold for an amount equal to its face value.Which of the following statements would explain why?

• A)The debenture is not secured by specific assets of the issuer.
• B)The debenture's stated rate is lower than the prevailing market rate at time of sale.
• C)The debenture's stated rate is higher than the prevailing market rate at time of sale.
• D)The debenture's stated rate is the same as the prevailing market rate at time of sale.

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Definitions:

Intangibility

A characteristic of services that means they cannot be seen, tasted, felt, heard, or smelled before they are bought.

Marketing Goals

Specific, measurable objectives that a company aims to achieve through its marketing efforts to support overall business goals.

SWOT Analysis

A tool used in strategic planning to identify and evaluate the Strengths, Weaknesses, Opportunities, and Threats related to a project or business venture.

Capability

The ability, skill, or expertise that an organization or individual has which enables them to achieve their objectives and perform effectively.