When a Company Sells Bonds Between Interest Dates They Will

question 108

Multiple Choice

When a company sells bonds between interest dates they will pay which of the following at the first interest payment date?

• A)An amount less than the stated interest rate times the principal.
• B)An amount more than the stated interest rate times the principal.
• C)An amount equal to the stated interest rate times the principal.
• D)The company may skip the first interest payment date since the appropriate time has not passed.

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