Which a debenture will be issued at discount value

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Reference no: EM133012219

Problem 1: A debenture will be issued at discount value:

Select one:

a. When coupon rate of interest is lower than market rate of interest

b. On those occasions when the offer rate is equal to the coupon rate.

c. On most occasions, because management is careful to issue the debentures at an amount close to the market rate.

d. Because that is the offer price; if the rate offered is too low the offer will be under-subscribed, so those who take it up will receive more interest.

Reference no: EM133012219

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