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متابعة

A bond will sell at a premium if:?

a. The market rate of interest is equal to the bond’s stated rate.

b. The market rate of interest is greater than the bond’s stated rate.

c. The market rate of interest is less than the bond’s stated rate..

d. The bond is convertible into common stock.

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تم إضافة السؤال من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
تاريخ النشر: 2015/07/07
Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, Option C is the right answer.

Ahmer Zamir
من قبل Ahmer Zamir , Consultant , Saleem Associates & Co

The Correct option is c) The market rate of interest is less than bond 's stated rate.

Mustafa Haider
من قبل Mustafa Haider , Assistant Manager Accounts , Kamal Hosiery Mill

answer C is correct..when " The market rate of interest is less than the bond’s stated rate.."because mostly in order to attract investors organisations offer bond at premiuim.(that means more intrest income than market rate)..if bond rate of interest in less than market rate then why investors will invest in that company

Ahmed El Minayer
من قبل Ahmed El Minayer , Chief Accountant , Freight Solutions Logistics services

c. The market rate of interest is less than the bond’s stated rate------------------------------.

mehfooz alam khan habib khan
من قبل mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

Option c.........................

Mohammed Asim Nehal
من قبل Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

c) The market rate of interest is less than the bond’s stated rate..

Shazia Anees
من قبل Shazia Anees , Assistant Manager Finance , Arham Trading Company

option c=======================

Zehab Osman
من قبل Zehab Osman , Accountant , Aldar Consultancy Co.

C------------------------------------------------------

Tranquilino Jr Rivera
من قبل Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

The answers is C. Market Rate of interest < Bond's stated rate.

lakshminarasimham mallareddi
من قبل lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct answer is b. The market rate of interest is greater than the bond's stated rate because a bond will sell at a premium.

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