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A Debt Is Said to Be Selling at Par When

Question 34

Multiple Choice

A debt is said to be selling at par when:


A) investors' required rate of return from debt is greater than the coupon rate.
B) the market rate of return is more than the coupon rate of return.
C) the borrower pays the interest at the maturity of the debt.
D) the current market price of the debt is more than the face value of the debt.
E) the market value is equal to the face value of the debt.

Correct Answer:

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