Multiple Choice
Selling the bonds at a premium has the effect of
A) causing the total cost of borrowing to be higher than the bond interest paid.
B) causing the total cost of borrowing to be lower than the bond interest paid.
C) raising the effective interest rate above the state interest rate.
D) increasing the amount of cash paid for interest each 6 months.
Correct Answer:
Verified
Correct Answer:
Verified
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