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What happens when the market and face value is the same

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Bonds can be used to build major facilities such as; hospitals, churches, business complexes, and universities. The issuing company becomes the debtor and those receiving these bonds are called the creditors. When companies issue bonds, normally they have a par or face value assigned to the bond.

What happens when the market value of the bond exceeds its face value? What happens when the market value is less than the face value?

What happens when the market and face value is the same?

Reference no: EM131783046

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