Which of the following statements is TRUE if a bond is issued at an amount less than its face value?

A) The bond's stated rate is lower than the prevailing market rate at the time of sale.
B) The bond's stated rate is the same as the prevailing market rate at the time of sale.
C) The bond's stated rate is higher than the prevailing market rate at the time of sale.
D) The bond is not secured by specific assets of the issuer.


A) The bond's stated rate is lower than the prevailing market rate at the time of sale.

Business

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