Multiple Choice
The Cases Company issues $800 000 of 7%,10-year debentures on 31 March 2016.The debenture pays interest on 31 March and 30 September.Which of the following statements is TRUE?
A) If the market rate of interest is 8%,the debentures will issue at a discount.
B) If the market rate of interest is 8%,the debentures will issue at a premium.
C) If the market rate of interest is 8%,the debentures will issue at par.
D) If the market rate of interest is 8%,the debentures will issue above par.
Correct Answer:
Verified
Correct Answer:
Verified
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