For a Bond Issue That Sells for More Than the Bond

question 118

Multiple Choice

For a bond issue that sells for more than the bond face amount,the stated interest rate is:

• A)The actual yield rate.
• B)The prime rate.
• C)More than the market rate.

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Definitions:

Elements of Causation

Fundamental components required to establish a cause-and-effect relationship in a legal context, typically including direct cause, foreseeability, and harm.

Proximate Cause

The primary cause that in a natural and continuous sequence, unbroken by any efficient intervening cause, produces an event and without which the event would not have occurred.

Cause in Fact

A legal principle that establishes an event as the direct cause of an injury, required for proving negligence.

Res Ipsa Loquitur

A doctrine in tort law that infers negligence from the very nature of an accident or injury, in the absence of direct evidence on how any defendant behaved.