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.

---

Definitions:

Protect

To legally defend or safeguard an individual, group, or entity from harm or legal infringement.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty providing a uniform international sales law.

International Sales

The process of selling goods or services to customers in different countries, subject to international trade laws and agreements.

Obligations

Obligations or commitments required by law, agreement, or moral principles that one entity must fulfill towards another.