If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually would sell at an amount
A) less than face value.
B) equal to the face value.
C) greater than face value.
D) that cannot be determined.
C
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__________ institutions use norms, values, customs, and ideologies to mold behavior.
Fill in the blank(s) with the appropriate word(s).
A demand instrument is overdue on the day after its date.
Answer the following statement true (T) or false (F)
Current assets minus current liabilities is:
A. Current ratio. B. Working capital. C. Financial leverage. D. Quick assets. E. Profit margin.
Beginning with a zero-leverage company, as debt is substituted for equity in the capital structure ________
A) the overall cost of capital first rises, reaches a maximum, and then declines B) the overall cost of capital declines C) the overall cost of capital first declines, reaches a minimum, and then rises D) the overall cost of capital rises