Question
A $25,000 10-year bond that pays interest semiannually with a 7% stated interest rate is issued when the market interest rate is 6%. The maturity
A $25,000 10-year bond that pays interest semiannually with a 7% stated interest rate is issued when the market interest rate is 6%. The maturity value of this bond will be:
A. equal to the issue price.
B. higher than the face value.
C. less than the issue price.
D. higher than the issue price.
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Financial Accounting An International Perspective
Authors: Arne Kinserdal
2nd Edition
0273631543, 978-0273631545
