The reason bonds are sometimes issued at a discount is:
A)the stated rate of interest is higher than the rate being paid on investments in the securities market with comparable risk.
B)the stated rate of interest is the same as the rate being paid on investments in the securities market with comparable risk.
C)the stated rate of interest is lower than the rate being paid on investments in the securities market with comparable risk.
D)the bonds are being issued between interest payment dates.

Question

Quizplus · Accepted Answer

Bonds are issued at a discount when the stated interest rate is lower than the market rate, making them less attractive unless sold for less than face value.

The Reason Bonds Are Sometimes Issued at a Discount Is