A Bond Sells at a Discount When The

question 140

Multiple Choice

A bond sells at a discount when the:

• A) Contract rate is above the market rate.
• B) Contract rate is equal to the market rate.
• C) Contract rate is below the market rate.
• D) Bond has a short-term life.
• E) Bond pays interest only once a year.

---

Definitions:

Newly Issued Shares

Shares that have been made available for sale for the first time, representing a portion of the corporation's equity newly offered to investors.