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A Bond Issued at a Premium Indicates That at the Date

Question 43

Multiple Choice

A bond issued at a premium indicates that at the date of issue:


A) Its stated rate was lower than the prevailing market rate of interest on similar bonds.
B) Its stated rate was higher than the prevailing market rate of interest on similar bonds.
C) The bonds were issued at a price greater than their face value.
D) The bonds must be non-interest bearing.

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