Which of the following statements is true if a bond's stated interest rate is the same as the market rate?
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

If a bond's stated interest rate is the same as the market rate, it means that the bond is being issued at par value, which is the face value of the bond. The bond will neither be issued at a premium nor at a discount, and the amount issued will be equal to the maturity value of the bond.

Which of the Following Statements Is True If a Bond's