When Bonds Are Sold for Less Than the Par Amount,what

question 81

Multiple Choice

When bonds are sold for less than the par amount,what does this signify?

• A) Maturity value will be less than the par amount.
• B) Maturity value will be greater than the par amount.
• C) The bonds are being sold at a premium.
• D) The stated rate of interest is less than the yield rate of interest.

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Definitions:

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business, potentially including high startup costs, stringent regulations, or strong brand loyalty among consumers.

Patent

An exclusive right given to inventors to produce and sell a new product or machine for 20 years from the time of patent application.

Imitation

The action of using someone or something as a model and copying their behavior or actions.

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Costs associated with legal advice, litigation, or other legal activities which individuals or businesses might incur.