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Abc company is in the process of issuing bonds. The bonds have a stated interest rate of 6%, which is 2% above the current market rate. What effect will the two interest rates have on the bond issue price?
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44 votes
44 votes
Abc company is in the process of issuing bonds. The bonds have a stated interest rate of 6%, which is 2% above the current market rate. What effect will the two interest rates have on the bond issue price?.

User Arsalan T
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1 Answer

12 votes
12 votes

Answer:

The issue price will be above the bond's face value.

Step-by-step explanation:

User Dmila Ram
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