Encana Corp

Multiple Choice

Encana Corp.is planning to issue $1,000 bonds with a stated interest rate of 7% and a maturity date of July 15,2019.Interest rates fall in the economy so that similar financial investments pay 5%.Encana will:

A) not be able to issue the bonds from the market because no one will buy them.
B) receive a higher issue price as buyers compete for the bonds.
C) have to accept a lower issue price to attract buyers.
D) have to reprint the bond certificates to change the stated interest rate to 5%.