A Debenture Is Sold for an Amount Equal to Its

question 46

Multiple Choice

A debenture is sold for an amount equal to its face value.Which of the following statements would explain why?

• A)The debenture is not secured by specific assets of the issuer.
• B)The debenture's stated rate is lower than the prevailing market rate at time of sale.
• C)The debenture's stated rate is higher than the prevailing market rate at time of sale.
• D)The debenture's stated rate is the same as the prevailing market rate at time of sale.

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Definitions:

First National Bank

A commonly used name for banks in various countries, typically indicating it was the first bank chartered under national laws.

Deposit Slip

A document that accompanies bank deposits, detailing the amount of cash and/or checks being deposited.

Currency

A system of money in general use in a particular country.

Check Register

A record of all checks written, deposits made, and charges or credits to a bank account.