A bond is issued for less than its face value. Which statement most likely would explain why?A. The bond’s contract rate is lower than the market rate at the time of the issue. B. The bond’s contract rate is the same as the market rate at the time of the issue. C. The bond’s contract rate is higher than the market rate at the time of the issue. D. The bond isn’t secured by specific assets of the corporation.
D is the most likely choice, because corporations are required by law to only sell bonds at face value prices.
So there must be some security issue that's been breached or a loophole found. Here's a good website for you: https://www.boundless.com/
It's really good for what you're learning.
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