Notes and bonds are long-term debt instruments. Long-term debt instruments are sold at ______________ when the market rate _____________ the stated interest rate.

Question

Quizplus · Accepted Answer

Long-term debt instruments like notes and bonds are sold at a discount when the market interest rate exceeds the stated interest rate, as investors require a higher yield to compensate for the lower interest payments.

Notes and Bonds Are Long-Term Debt Instruments