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

question 69

Multiple Choice

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

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

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Definitions:

Encoding

The initial process of transforming sensory information into a form that can be stored and recalled later from the memory.

Decay

The process of decline in quality, power, or vigor; the decomposition of organic matter.

Retrieval

The method of retrieving data from memory storage and bringing it back into conscious recognition.

Tip-of-the-tongue Effects

A psychological phenomenon where a person knows something but cannot retrieve the information from memory, although it feels just out of reach.