If a bonds stated interest rate is 4% and the market interest rate is 6%, the bond

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If a bond’s stated interest rate is 4% and the market interest rate is 6%, the bond is likely to be issued at

A. par.

B. a discount.

C. maturity value.

C. a premium.

Related Book For answer-question

Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Posted Date: Mar 02, 2022 01:39 AM

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If a bonds stated interest rate is 4% and the market interest rate is 6%, the bond

Question:

Expert Answer:

This will be a Bond Discount Bond discount is the amount by which the market price of a bond is lower than its principal amount due at maturity This amount called its par value is often 1000 The prima... View the full answer

Accounting concepts and applications

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