Which of the Following Statements Is True If a Bond

question 18

Multiple Choice

Which of the following statements is true if a bond is issued for an amount higher than face value?

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

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Definitions:

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