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Ford is planning to issue $1,000 bonds with a stated interest rate of 7% and a maturity date of July 15, 2026. If interest rates
Ford is planning to issue $1,000 bonds with a stated interest rate of 7% and a maturity date of July 15, 2026. If interest rates fall in the economy so that similar financial investments pay 5%, Ford will: A. not be able to issue the bonds because no one will buy them. B. receive a higher issue price (i.e. a premium) as buyers compete for the bonds. C. have to accept a lower issue price (i.e. a discount) to attract buyers. D. have to reprint the bond certificates to change the stated interest rate to 5%.
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