Which of the following statements is TRUE about a debenture that is issued at a discount?
A)It will be sold for less than the face value.
B)It will be sold at par.
C)It will repay principal at less than the face value.
D)Its interest rate is higher than the prevailing market rate.

Question

Quizplus · Accepted Answer

A debenture issued at a discount is sold for less than its face value, meaning investors pay less upfront and receive the full face value at maturity.

Which of the Following Statements Is TRUE About a Debenture