Stated rate of interest versus the market rate of interest Required Indicate whether a bond will sell at a premium (P), discount (D), or face value (F) for each of the following conditions a The market rate of interest is equal to the stated rate b The market rate of interest is less than the state...

Stated rate of interest versus the market rate of interest Required Indicate whether a bond will sell

Question:

Stated rate of interest versus the market rate of interest
Required
Indicate whether a bond will sell at a premium (P), discount (D), or (F) for each of the following conditions:
a. ________ The market rate of interest is equal to the stated rate.
b. ________ The market rate of interest is less than the stated rate.
c. ________ The market rate of interest is higher than the stated rate.
d. ________ The stated rate of interest is higher than the market rate.
e. ________ The stated rate of interest is less than the market rate.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...