Endeavor Company issued 20-year bonds with a coupon rate of 6% when the market rate of interest was 9%.This means that the bonds were issued

Name: Endeavor Company issued 20-year bonds with a coupon rate of 6% when the market rate of interest was 9%.This means that the bonds were issued
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Question

Quizplus · Accepted Answer

When the coupon rate is less than the market rate, it means the bonds were issued at a discount. In this case, the coupon rate is 6% and the market rate is 9%, which indicates that the bonds were issued at a discount.

Endeavor Company Issued 20-Year Bonds with a Coupon Rate of 6