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

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