Which Statement Regarding the Sale of Bonds Is NOT True

question 105

Multiple Choice

Which statement regarding the sale of bonds is NOT true?

• A)Bonds are always sold at their market price.
• B)The market price is the present value of the bond.
• C)The present value of the bond is the present value of the principal plus the present value of the cash interest payment.
• D)The contract rate and the effective rate have no effect on the selling price of the bond.

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Definitions:

Denominations

Refers to distinct religious groups within a larger faith, typically differing in organization, practice, and beliefs.

Methodist

A denomination of Protestant Christianity emphasizing a personal relationship with Jesus Christ, social justice, and the universality of God's grace.

Baptist

Baptist denominations are groups within Christianity known for practicing believer's baptism (as opposed to infant baptism) and upholding the autonomy of local congregations.

Black Education

Refers to the educational opportunities and institutions tailored specifically for African American students, historically significant due to segregation and discrimination.