BSA Corporation issued bonds two years ago. If the _______ interest rate _______, the market value of the bond will decrease. A. Coupon; increases. B. Coupon; decreases. C. market; increases. D. Market; decreases

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...
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BSA Corporation issued bonds two years ago. If the _______ interest rate _______, the market value of the bond will decrease.

A. Coupon; increases.

B. Coupon; decreases.

C. market; increases.

D. Market; decreases

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