A Bond Issued at a Discount Indicates That at the Date

question 115

Multiple Choice

A bond issued at a discount indicates that at the date of issue:

• A) Its stated rate was lower than the prevailing market rate of interest on similar bonds.
• B) Its stated rate was higher than the prevailing market rate of interest on similar bonds.
• C) The bonds were issued at a price greater than their face value.
• D) The bonds must be non-interest bearing.

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