Question
Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was
Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually.
An investor would be willing to pay an amount __________ the face value for this bond.
a. less than
b. more than
c. equal to
The bonds were issued at _________.
a. a premium
b. par
c. a discount
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Edp Auditing A Functional Approach
Authors: Albert J. Harnois
1st Edition
0132246848, 978-0132246842
