When the Contract Rate on a Bond Issue Is Less

question 96

True/False

When the contract rate on a bond issue is less than the market rate, the bonds will generally sell at a discount.

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Definitions:

Agricultural

Relating to the science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products.

Food, Conservation, and Energy Act

A comprehensive farm bill passed by the U.S. Congress in 2008 that aimed to provide funding for agricultural programs, renewable energy, conservation, and food assistance.

Farm Subsidies

Financial aid and support provided by the government to farmers and agribusinesses to supplement their income and manage the supply of agricultural commodities.

Direct Payments

Payments made directly by the government to farmers, individuals, or businesses not requiring the provision of goods or services in return.