Question
If a entity sells bonds at a premium: The bonds' contract rate is less than the market rate at issuance. The bonds' contract rate is
If a entity sells bonds at a premium:
| The bonds' contract rate is less than the market rate at issuance. | ||
| The bonds' contract rate is the same as the markets at issuance. During the bonds' term, the market rate changes and is becomes lower than the bonds' contract rate. | ||
| The bonds' contract rate is higher than the market rate at issuance. | ||
| The bonds' contract rate is the same as the market rate at issuance. | ||
| The bonds' contract rate is lower than the market rate at issuance and changes during the term of the bond to become higher than the bond's contract rate. |
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Global Strategy
Authors: Mike W. Peng
5th Edition
0357512367, 978-0357512364
