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

question 108

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.

---

Definitions:

Neuroticism

Neuroticism is a personality trait characterized by a tendency to experience negative emotions such as anger, anxiety, or depression more frequently and intensely than others.

Agreeableness

One of the five major dimensions of personality, characterized by attributes such as kindness, empathy, and a willingness to cooperate and get along with others.

Extraversion

A personality trait characterized by outgoingness, high energy, and positive emotions; extraverts tend to enjoy being around people.

Biology

the scientific study of life and living organisms, encompassing their structure, function, growth, evolution, and distribution.