Business, 31.12.2019 06:31 patience233

23.

if bonds are issued at a premium, the stated interest rateis

a)

higher than the market rate of interest.

b)

lower than the market rate of interest.

c)

too low to attract investors.

d)

adjusted to a higher rate of interest.

24.

$5 million, 8%, 10-year bonds are to be issued at a 6% marketrate. interest will be paid semiannually. when calculating themarket price of the bond, the rate to be used to calculate thepresent value of the face amount and the present value of theperiodic interest payments is

a)

4%.

b)

3%.

c)

8%.

d)

6%.

Answers: 2

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23.

if bonds are issued at a premium, the stated interest rateis

a)