Multiple Choice
Which of the following statements regarding bond discounts or premiums is true?
A) A discount on a bond reduces the amount that the issuer has to repay to the lenders.
B) A premium on a bond increases the interest expense of the loan to the issuer.
C) A premium on a bond increases the amount that the issuer has to repay to the lenders.
D) A discount on a bond increases the interest expense of the loan to the issuer.
Correct Answer:
Verified
Correct Answer:
Verified
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