Question

A bond issued at face (100%) would be issued at a discount. true or false

A bond issued at face (100%) would be issued at a discount.

true or false

Homework Answers

Answer #1

A BOND IS ISSUED AT A DISCOUNT WHEN IT IS ISSUED FOR A VALUE LESS THAN THE FACE VALUE. A BOND IS ISSUED AT A PREMIUM WHEN IT IS ISSUED FOR A VALUE HIGHER THAN THE FACE VALUE. A BOND ISSUED AT FACE VALUE IS NEITHER A BOND ISSUED AT DISCOUNT NOR ISSUED AT PREMIUM. A BOND IS ISSUED AT A DISCOUNT WHEN THE MARKET INTEREST RATES ARE HIGHER THAN THE COUPON RATE OF THE BOND

BASED ON THE ANALYSIS IT IS FOUND THAT THE STATEMENT WHICH IS GIVEN IN THIS QUESTION IS FALSE.

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