Question
The market rate of interest for a bond issue which sells for more than its par value is: a. independent of the interest rate stated
The market rate of interest for a bond issue which sells for more than its par value is:
a. independent of the interest rate stated on the bond.
b. higher than the interest rate stated on the bond.
c. equal to the interest rate stated on the bond.
d. less than the interest rate stated on the bond.
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ANSWER b higher than the interest rate stated on the bond The stated interest rate is the interest r...Get Instant Access to Expert-Tailored Solutions
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
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