If a Bond's Stated Interest Rate Is Lower Than the Market

question 49

Multiple Choice

If a bond's stated interest rate is lower than 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 higher than the maturity value.

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Definitions:

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