Multiple Choice Question 161 f bonds are issued at a premium

Multiple Choice Question 161 f bonds are issued at a premium, the stated interest rat 16 a. b. C. d. too low to attract investors. adjusted to a higher rate of interest. higher than the market rate of interest. lower than the market rate of i / nterest.

Solution

When bonds are issued at a premium, the stated interest rate is higher than the market interest rate and therefore investors paying more. Option C is correct