Question: If the entity is offering a higher interest rate on debentures than the market believes is appropriate, the market will: be prepared to pay more

If the entity is offering a higher interest rate on debentures than the market believes is appropriate, the market will:

be prepared to pay more than the par value of the debentures, offering a discount.

be prepared to pay less than the par value of the debentures, offering a discount.

be prepared to pay more than the par value of the debentures, offering a premium.

be prepared to pay less than the par value of the debentures, offering a premium.

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