2. Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. An investor would be willing to pay an amount ? the face value for this bond. A. More than B. Less than C. Equal to The bonds were issued at? A. Par B. A premium C. A discount
2. Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. An investor would be willing to pay an amount ? the face value for this bond. A. More than B. Less than C. Equal to The bonds were issued at? A. Par B. A premium C. A discount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually.
An investor would be willing to pay an amount ? the face
A. More than
B. Less than
C. Equal to
The bonds were issued at?
A. Par
B. A premium
C. A discount
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