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Companies Attempt to Issue Bonds at Coupon Rates That Are

Question 36

Multiple Choice

Companies attempt to issue bonds at coupon rates that are equal to market rates at the time of issue. Because of the time delay necessary to print and issue bonds:


A) there is usually some discount or premium associated with new issues.
B) the market temporarily modifies its yield to permit the bond to sell at face value at issue.
C) the issuing company modifies the coupon rate on the issue date to equal the market's yield.
D) All of the above

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