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30 May, 10:29

Which of the following statements is true of a bond that is issued at a discount? A) At maturity, the bond will repay an amount that is less than the face value. B) The bond will be issued for an amount less than the face value. C) The bond will be issued at par. D) The stated interest rate is higher than the prevailing market interest rate.

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  1. 30 May, 10:36
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    Answer: The statement "B) The bond will be issued for an amount less than the face value." is TRUE.

    Explanation: Bonds issued at a discount are those that are issued for less than the nominal amount. The interesting thing about these bonds issued at a discount is that they can have high yields.
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Home » Business » Which of the following statements is true of a bond that is issued at a discount? A) At maturity, the bond will repay an amount that is less than the face value. B) The bond will be issued for an amount less than the face value.
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