If a bond sells at a discount, which of the following is true?

Question

a. The market interest rate at the time of issue is greater than the stated interest rate on the bond..

b. The market interest rate at the time of issue is less than the stated interest rate on the bond.

c. The market interest rate at the time of issue is the same as the stated interest rate on the bond issue.

d. The market interest rate is expected to increase above the stated interest rate on the bond.

Zehab Osman · Answer

A-------------------------------------------------------

Shazia Anees · Answer

option a========================

Shahbaz Hayder · Answer

Yes, Option a is the right answer.

Mohammed Asim Nehal · Answer

a. The market interest rate at the time of issue is greater than the stated interest rate on the bond.

Tranquilino Jr Rivera · Answer

The answer is Letter A. Market rate of interest > Stated rate of interest

Robert Peter · Answer

po>par and YTM

lakshminarasimham mallareddi · Answer

Correct answer is b. The market interest rate at the time of issue is less than the stated interest rate on the bond because bond sells at a discount.

Habla Espanola · Answer

A discount bond is the opposite of a premium bond, which occurs when the market price of a bond is higher than the price for which it was originally sold. To compare the two in the current market, and to convert older bond prices to their value in the current market, you can use a calculation called yield to maturity. Bail Bond Agent CA

mehfooz alam khan habib khan · Answer

Yes option A brcause market interest rate greater tha bond stated rate...........

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If a bond sells at a discount, which of the following is true?

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