Multiple Choice
Which of the following statements regarding bond terminology is true?
A) The face value of a bond is what it is currently worth in the market.
B) The stated interest rate is expressed as an annual interest rate even if the bonds pay semiannual interest payments.
C) The stated rate of interest always presents the amount that investors are willing to pay for the bond on the issue date.
D) The carrying value of the bond is always equal to the face value of the bond.
Correct Answer:
Verified
Correct Answer:
Verified
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