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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.
A-------------------------------------------------------
option a========================
Yes, Option a is the right answer.
a. The market interest rate at the time of issue is greater than the stated interest rate on the bond.
The answer is Letter A. Market rate of interest > Stated rate of interest
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.
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