A Debenture Is Sold for an Amount Equal to Its

Multiple Choice

A debenture is sold for an amount equal to its face value. Which of the following statements would explain why?

A) The debenture is not secured by specific assets of the issuer.
B) The debenture's stated rate is higher than the prevailing market rate at time of sale.
C) The debenture's stated rate is the same as the prevailing market rate at time of sale.
D) The debenture's stated rate is lower than the prevailing market rate at time of sale.