Given the Information Below,which Bond(s)will Be Issued at a Discount

question 74

Multiple Choice

Given the information below,which bond(s) will be issued at a discount?
$$\begin{array} { | l | c | c | c | c | } \hline & \text { Bond 1 } & \text { Bond 2 } & \text { Bond 3 } & \text { Bond 4 } \\\hline \text { Stated Rate of Return } & 10 \% & 8 \% & 12 \% & 12 \% \\\hline \text { Market Rate of Return } & 12 \% & 8 \% & 15 \% & 10 \% \\\hline\end{array}$$

• A)Bond 1
• B)Bond 3
• C)Bond 2 and 4
• D)Bonds 1 and 3

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Numerical Techniques

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Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values.