Which of the Following Statements Is True If a Bond

question 89

Multiple Choice

Which of the following statements is true if a bond is sold for an amount equal to its face value?

• 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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