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Which of the following statements is correct ? A-The market rate of interest refers to the interest rate that the bond-issuing company promises to pay
Which of the following statements is correct?
A-The market rate of interest refers to the interest rate that the bond-issuing company promises to pay the bondholders.
B-There are almost always small differences between the stated rate and the market rate when bonds are issued.
C-If the stated rate of interest on a bond is equal to the market rate of interest, then the bond will sell at a premium price.
D-The market rate of interest has no bearing on the selling price of the bonds.
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