An Initial Issue Price Equal to the Face Value of the Bonds

question 69

Multiple Choice

An initial issue price equal to the face value of the bonds means that the implicit interest rate equals the _____.

• A)fair interest rate
• B)average interest rate
• C)future interest rate
• D)yield to maturity
• E)past interest rate

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Definitions:

Normal Sales

The expected amount of sales based on historical data, market conditions, and economic forecasts, under regular business operations.

Per Unit

A term indicating the cost, price, or required quantity of something on an individual basis.

Outside Supplier

An external entity that provides goods or services to another company.

Indifferent

A state or condition where a decision-maker has no preference between two or more alternatives.