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متابعة

If a bond sells at a discount, which of the following is true?

a. The market interest rate at the time of issue is greater than the stated interest rate on the bond..

b. The market interest rate at the time of issue is less than the stated interest rate on the bond.

c. The market interest rate at the time of issue is the same as the stated interest rate on the bond issue.

d. The market interest rate is expected to increase above the stated interest rate on the bond.

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تم إضافة السؤال من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
تاريخ النشر: 2015/07/07
Zehab Osman
من قبل Zehab Osman , Accountant , Aldar Consultancy Co.

A-------------------------------------------------------

Shazia Anees
من قبل Shazia Anees , Assistant Manager Finance , Arham Trading Company

option a========================

Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, Option a is the right answer.

Mohammed Asim Nehal
من قبل Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

a. The market interest rate at the time of issue is greater than the stated interest rate on the bond.

Tranquilino Jr Rivera
من قبل Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

The answer is Letter A. Market rate of interest > Stated rate of interest

lakshminarasimham mallareddi
من قبل lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct answer is b. The market interest rate at the time of issue is less than the stated interest rate on the bond because bond sells at a discount.

Habla  Espanola
من قبل Habla Espanola

A discount bond is the opposite of a premium bond, which occurs when the market price of a bond is higher than the price for which it was originally sold. To compare the two in the current market, and to convert older bond prices to their value in the current market, you can use a calculation called yield to maturity.  Bail Bond Agent CA   

mehfooz alam khan habib khan
من قبل mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

Yes option A brcause market interest rate greater tha bond stated rate...........

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