Question

A corporate bond with a face value of $1,000 is issued at 107. This means that the bond actually sold for:

A) $107 and the stated interest rate was higher than the market interest rate.

B) $1,070 and the stated interest rate was higher than the market interest rate.

C) $107 and the stated interest rate was lower than the market interest rate.

D) $1,070 and the stated interest rate was lower than the market interest rate.

Answer

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