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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.
Yes, Option C is the right answer.
The Correct option is c) The market rate of interest is less than bond 's stated rate.
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
c. The market rate of interest is less than the bond’s stated rate------------------------------.
c) The market rate of interest is less than the bond’s stated rate..
option c=======================
C------------------------------------------------------
The answers is C. Market Rate of interest < Bond's stated rate.
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.
