Multiple Choice
Which of the following statements is TRUE of a bond that is issued at a discount?
A) The bond will be issued at par.
B) The stated interest rate is higher than the prevailing market interest rate.
C) At maturity, the bond will repay an amount that is less than the face value.
D) The bond will be issued for an amount less than the face value.
Correct Answer:
Verified
Correct Answer:
Verified
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