Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term placing the letter designating the term in the space provided.
a.Bonds issued at face value
b.Bonds issued at a discount
c.Bonds issued at a premium
d.Stated interest rate
e.Market interest rate
Phrases:
_____ The true interest rate used by investors to value a bond.
_____ The stated interest rate is more than the market interest rate.
_____ The stated interest rate equals the market interest rate.
_____ The stated interest rate is less than the market interest rate.
_____ The rate quoted in the bond contract used to calculate the cash payments for interest.
Correct Answer:
Verified
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