If bonds are issued at a discount,it means that the:
A)market interest rate is higher than the stated interest rate.
B)market interest rate is lower than the stated interest rate.
C)financial strength of the issuer is weak.
D)bond is convertible.

Question

Quizplus · Accepted Answer

When bonds are issued at a discount, it means the market interest rate is higher than the stated interest rate. This is because investors require a higher return on their investment, which leads to a reduction in the price of the bond.

If Bonds Are Issued at a Discount,it Means That The