A debt is said to be selling at par when

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Reference no: EM131994071

1. ?Revenue bonds are used to:

a. ?raise funds for projects that require additional funding by increasing tax rates.

b. ?raise funds for projects that will generate revenues.

c. ?raise funds to repay loans borrowed by the local government.

d. ?raise funds to pay interest on T-bills issued by the state government.

e. ?raise funds to repay loans borrowed from the federal government.

2. A debt is said to be selling at par when:?

a. ?the market value is equal to the face value of the debt.

b. investors' required rate of return from debt is equal to the coupon rate.?

c. ?the market rate of return is more than the coupon rate of return.

d. ?the borrower pays the interest at the maturity of the debt.

e. ?the current market price of the debt is more than the face value of the debt.

Reference no: EM131994071

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