Firms attempt to price bonds so that at issue they sell for the:
A)face value.
B)coupon value.
C)firm value.
D)same price as shares of preferred stock.

Question

Quizplus · Accepted Answer

Firms aim to price bonds in such a way that they sell for face value at issue. This means that investors will pay the full amount of the bond and receive the full face value upon maturity, allowing the firm to raise the necessary capital.

Firms Attempt to Price Bonds So That at Issue They