Multiple Choice
Which of the following statements is TRUE if a bond is issued for an amount equal to its face value?
A) The bond's stated interest rate is less than the prevailing market interest rate at time of sale.
B) The bond's stated interest rate is the same as the prevailing market interest rate at time of sale.
C) The bond's stated interest rate is more than the prevailing market interest rate at time of sale.
D) The bond is not secured by specific assets of the issuer.
Correct Answer:
Verified
Correct Answer:
Verified
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