Bonds,with the Same Face Value,issued at a Premium Will

question 96

Multiple Choice

Bonds,with the same face value,issued at a premium will:

• A)Have a greater maturity value than a bond issued at a discount.
• B)Have a lesser maturity value than a bond issued at a discount.
• C)Have the same maturity value as a bond issued at a discount.
• D)Have a different maturity value than a bond issued at a discount,depending upon the interest rate and maturity date.

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Definitions:

Balance Sheet

A report that outlines the total assets, obligations, and equity of shareholders of a company at a given time.

Par Value

The face value of a bond or stock as specified by the issuing company, which has little relation to its market value.

Market Value

The price at which an asset would trade in a competitive auction setting.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.