Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) If a bond is sold "at a discount," the effective interest rate on the bond is lower than the stated interest rate.
B) Bond price of 98 means that the yield rate is 98% of the stated rate.
C) If a bond is sold "at a premium," the effective interest rate on the bond is higher than the stated interest rate.
D) If a bond is sold between interest dates, it is necessary to record the interest accrued since the last payment date before sale.