A Bond Is Sold for an Amount Higher Than Face

question 111

Multiple Choice

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

• 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:

Equal Pay

The legal or ethical principle requiring that employees be paid the same wage for similar work regardless of gender, age, ethnicity, or other non-performance related factors.

Comparable Worth

The principle of equal pay for work of equal value, regardless of the gender or status of the worker.

Federal Employment Discrimination Laws

Laws that protect employees from discrimination in the workplace based on race, color, religion, sex, national origin, age, disability, or genetic information.

Closed Shop

A workplace arrangement where only employees who are union members are hired, often found in collective bargaining agreements.