Which of the Following Statements Is TRUE About a Debenture

question 67

Multiple Choice

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

• A)It will be sold for less than the face value.
• B)Its interest rate is higher than the prevailing market rate.
• C)It will be sold at par.
• D)It will repay principal at less than the face value.

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Definitions:

Discount

A reduction applied to a regular price or rate, often used to encourage purchase or prompt payment.

ROG

Depending on context, it may refer to "Receipt of Goods," the point at which goods are received and acknowledged by the buyer.

Net Price

The actual price paid for a product or service after subtracting any discounts, rebates, or allowances.

Discount

A reduction applied to a regular price or rate, often used as an incentive for purchasing goods or services.