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If a Firm's Bonds Payable Are Issued at a Discount,it

Question 40

Multiple Choice

If a firm's bonds payable are issued at a discount,it is apparent that


A) at the issue date,the face interest rate was less than the market interest rate
B) the firm will be able to pay off the bonds for less than maturity value
C) the bonds must be convertible
D) the bonds have a low rating

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