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Financial Accounting Study Set 8
Quiz 8: Long-Term Investments: The Time Value of Money
If the Stated Rate of Interest on a Bond Exceeds
Question 3
True False
If the stated rate of interest on a bond exceeds the market rate of interest,the bond will sell at a premium.
True
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Q 4
The stated interest rate on a bond determines the amount of interest the issuer is expected to pay annually or semiannually.
Q 5
The market prices of bonds fluctuate inversely with market interest rates.
Q 6
If the market interest rate is greater than the coupon rate of interest on a bond,the bond will sell at a discount.
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