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What is the market rate of interest for a bond issue

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Reference no: EM132817140

Problem 1: What is the market rate of interest for a bond issue which sells for more than its face value?

a. Less than rate stated on the bond

b. Higher than rate stated on the bond

c. Equal to rate stated on the bond

d. Independent of rate stated on the bond

Problem 2: If the yield on a bond issue is greater than the contract rate, the bonds are sold at:

a. A discount.

b. A premium.

c. Face value.

d. Maturity value.

Reference no: EM132817140

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