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

question 128

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:

Calories

A unit of energy used to quantify the amount of energy provided by foods and beverages.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the fetus via the umbilical cord.

Third Stage

In various contexts, refers to a specific phase in a multi-stage process; its exact meaning can depend on the process being described.

Acrosome

A vesicle at the tip of a sperm cell that helps the sperm penetrate the egg.