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Bond:
The bond is a kind of security which is used for debt investment. The investor finances a certain amount of money for a determined time period and interest rate. The amount which is paid as an interest on the time of issuance of the bond is known as the bond interest expense.
The meaning of bond traded at
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Explanation of Solution
Option b, the bond trades at $975 per $1,000 is correct.
b. The bond traded at
a. The bond pays
c. The meaning of the bond trading at
d.
The bond trading at
e. The bond’s interest rate is
Thus, the option b. is correct.
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Chapter 10 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
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