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If bonds are issued at a discount, it means that the financial strength of the issuer is suspect. market interest rate is higher than the

If bonds are issued at a discount, it means that the

financial strength of the issuer is suspect.

market interest rate is higher than the contractual interest rate.

market interest rate is lower than the contractual interest rate.

bondholder will receive effectively less interest than the contractual interest rate

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Previous Question Next Question

		financial strength of the issuer is suspect.
		market interest rate is higher than the contractual interest rate.
		market interest rate is lower than the contractual interest rate.
		bondholder will receive effectively less interest than the contractual interest rate