If a bond is issued at 101, the stated rate of interest was
A) higher than the market rate of interest.
B) lower than the market rate of interest.
C)equal to the market rate of interest.
D)not related to the market rate of interest.

Question

Quizplus · Accepted Answer

When a bond is issued at 101, it means the bond is priced above its face value. This indicates that the stated rate of interest on the bond is higher than the prevailing market interest rate.

If a Bond Is Issued at 101, the Stated Rate