Which of the Following Statements Is TRUE of a Bond

question 63

Multiple Choice

Which of the following statements is TRUE of a bond that is issued at a discount?

• A) The bond will be issued at par.
• B) The stated interest rate is higher than the prevailing market interest rate.
• C) At maturity, the bond will repay an amount that is less than the face value.
• D) The bond will be issued for an amount less than the face value.

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Definitions:

Stress Reduction

Strategies or techniques used to decrease stress levels in individuals.

Vulnerable to Alcoholism

A higher susceptibility or likelihood of developing alcoholism based on genetic, psychological, or environmental factors.

Relieves Stress

Actions or practices that reduce tension, anxiety, or the physiological impact of stress on the body.

Metabolize Acetaldehyde

The process by which the body breaks down acetaldehyde, a toxic substance produced during the metabolism of alcohol.