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Match the Way a Bond Will Sell with the Situations

Question 147

Essay

Match the way a bond will sell with the situations given. Bond will sell for
A. Par
B. A discount
C. A premium
D. None of the above Situation ____
1. Bond sells at 108. ____
2. Bond sells at 93. ____
3. Bond sells at 100 . ____
4. The effective rate is greater than the stated rate . ____
5. The stated rate equals the effective rate. ____
6. The stated rate exceeds the effective rate .

Correct Answer:

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(1) C, (2)...

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