A company issues $10,000, 6%, 10-year bonds that pay interest annually. If the market rate is...

 

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A company issues $10,000, 6%, 10-year bonds that pay interest annually. If the market rate is 5%, the bonds would sell at an amount a. less than face value. b. equal to face value. c. greater than face value. d. that cannot be determined. A company issues $10,000, 6%, 10-year bonds that pay interest annually. If the market rate is 5%, the bonds would sell at an amount a. less than face value. b. equal to face value. c. greater than face value. d. that cannot be determined.

Answer rating: 100% (QA)

Answer C greater than face value Explanation in the selling of bonds the market interest rate may b... View the full answer