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What is the coupon rate if a bond is issued at a premium

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Reference no: EM132953386

Problem 1: If a bond is issued at a premium, the coupon rate is

A) equal to the effective rate.
B) less than the effective rate.
C) greater than the effective rate.
D) not needed to determine the bond's sale price.

Problem 2: When the occurrence of a liability is dependent on the outcome of some future event, the liability is referred to as a(n)

A) contingent liability.
B) commitment.
C) accrued liability.
D) accounts payable.

Problem 3: If a bond is issued at a discount, the coupon rate is

A) equal to the effective rate.
B) less than the effective rate.
C) greater than the effective rate.
D) not needed to determine the bond's sale price.

Reference no: EM132953386

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