Which of the Following Statements Is True If a Bond's

question 163

Multiple Choice

Which of the following statements is true if a bond's stated interest rate is higher than the market rate?

• A)The bond will be issued at a premium.
• B)The bond will be issued at par.
• C)The bond will be issued at a discount.
• D)The bond will be issued for an amount lower than the maturity value.

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Definitions:

Valid

Legally binding and enforceable, meeting all necessary legal formalities and requirements.

Extends

Refers to something that increases in length, duration, or scope.

Stop-Payment Orders

A request made by an account holder to a bank to not pay out on a check or payment that has been issued on their account.

Validity

The state of being legally sound, effective, or binding; the quality of being logically true or sound.