A Bond Issue with a Face Amount of $500,000 Bears

question 51

Multiple Choice

A bond issue with a face amount of $500,000 bears interest at the rate of 10%. The current market rate of interest is 11%. These bonds will sell at a price that is:

• A)Equal to $500,000.
• B)More than $500,000.
• C)Less than $500,000.
• D)The answer cannot be determined from the information provided.When the market rate of interest is higher than the bonds' stated rate, the bonds will sell at a discount.

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Definitions:

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Headscarf

A piece of fabric worn on the head for a variety of reasons including religious observance, cultural tradition, or fashion.

Political Rally

A large public gathering of people organized to support or oppose political candidates, parties, or policies, often featuring speeches and demonstrations.

Undue Hardship

Circumstances involving cost, or health or safety issues that would make it impossible or very difficult for an employer or service provider to meet the duty to accommodate.