When a Company Sells Bonds Between Interest Dates They Will

Multiple Choice

When a company sells bonds between interest dates they will pay which of the following at the first interest payment date?

A) An amount less than the stated interest rate times the principal.
B) An amount more than the stated interest rate times the principal.
C) An amount equal to the stated interest rate times the principal.
D) The company may skip the first interest payment date since the appropriate time has not passed.