A bond is issued at par value when: 1. The bond is not between interest payment

Question

A bond is issued at par value when: 1. The bond is not between interest payment dates. 2. The bond pays no interest. 3. Straight line amortization is used by the company. 4. The market rate of interest is the same as the contract rate of interest. 5. The bond is callable. A bond is issued at par value when: 1. The bond is not between interest payment dates. 2. The bond pays no interest. 3. Straight line amortization is used by the company. 4. The market rate of interest is the same as the contract rate of interest. 5. The bond is callable. A bond is issued at par value when: 1. The bond is not between interest payment dates. 2. The bond pays no interest. 3. Straight line amortization is used by the company. 4. The market rate of interest is the same as the contract rate of interest. 5. The bond is callable.

Explanation / Answer

A bond is issued at par value when The market rate of interest is the same as the contract rate of interest.

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