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A Debt Is Said to Be Selling at Par, When

Question 34

Multiple Choice

A debt is said to be selling at par, when the _____ of the debt is equal to the _____. 


A) par value; discounted value of the interest payments
B) principal value; discount on the issue of a zero coupon bond
C) face value; premium payment on the exercise of a call provision
D) market value; face value of the debt
E) maturity value; par value of the debt

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