If a bond's stated interest rate is the same as the market rate, which of the following is true?
A)The bond will be issued at a premium.
B)The bond will be issued at par.
C)The bond will be issued at a discount.
D)The bond will be issued for an amount lower than the maturity value.

Question

Quizplus · Accepted Answer

When a bond's stated interest rate is the same as the market rate, the bond will be issued at par. This means that the price of the bond will be equal to its face value or maturity value.

If a Bond's Stated Interest Rate Is the Same as the Market