A Bond Is Sold for an Amount Higher Than Face

question 54

Multiple Choice

A bond is sold for an amount higher than face value.Which of the following statements would explain why?

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

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Definitions:

Static

A keyword in programming languages that indicates a member of a class is shared among all instances or is accessible without needing an instance.

Void Methods

Methods in programming that do not return a value after executing a set of statements.

One Parameter

Describes a function or method that takes exactly one argument or input value.

Predefined Method

A function or procedure provided by a programming language or library, designed to perform a specific task.