When the contract interest rate for a bond exceeds the, Ask an Expert

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When the contract interest rate for a bond exceeds the effective interest rate of the bond, then:

a. The price of the bond will be equal to the future cash flow associated with the bond

b. The bond will be issued at a premium.

c. The bond will be issued at a discount.

d. The face value of the bond will fluctuate over its life.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92261128

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