13. The market rate of interest for a bond issue that sells for more than its face value is * a. Equal to the rate stated on the bond. b. Higher than the rate stated on the bond. c. Not dependent on the rate of the bond. d. Lower than the rate stated on the bond.

13. The market rate of interest for a bond issue that sells for more than its face value is * a. Equal to the rate stated on the bond. b. Higher than the rate stated on the bond. c. Not dependent on the rate of the bond. d. Lower than the rate stated on the bond.

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter7: Bonds And Their Valuation

Section: Chapter Questions

Problem 3DQ: Looking at the bond issue selected, why are the current yield and yield to maturity numbers...

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Question

13. The market rate of interest
for a bond issue that sells for
more than its face value is *
a. Equal to the rate stated on the
bond.
b. Higher than the rate stated on the
bond.
c. Not dependent on the rate of the
bond.
d. Lower than the rate stated on the
bond.

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