Which interest rate, the face rate or the market rate, should be used when calculating the issue

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Which interest rate, the face rate or the market rate, should be used when calculating the issue price of a bond? Why?

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Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1285183237

9th edition

Authors: Gary A. Porter, Curtis L. Norton

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Question Posted: Aug 12, 2016 11:08 AM

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Which interest rate, the face rate or the market rate, should be used when calculating the issue

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The issue price of a bond should always be calculated using the market rate of interest The ...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

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