Endeavor Company Issued 20-Year Bonds with a Coupon Rate of 6

question 32

Multiple Choice

Endeavor Company issued 20-year bonds with a coupon rate of 6% when the market rate of interest was 9%.This means that the bonds were issued

• A)at a premium.
• B)at a discount.
• C)at the face value.
• D)with an additional three years of interest.

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Definitions:

Actual Authority

The express and implied powers granted by a principal to an agent to act on the principal’s behalf.

Apparent Authority

The appearance or assumption of authority based on the actions or words of the principal, which a third party reasonably believes the agent has.

Implied Authority

Authority of an agent that is not expressly granted but rather implied by the actions, situation, or responsibilities given to the agent.

Implied Ratification

The act of accepting or endorsing a previously unauthorized action or agreement through behavior that implies approval, rather than through explicit consent.