Java Co. issued 15-year bonds with a maturity value of $600 million. Which of the following statements is true if the bonds were issued at their par value? Select one: Select one: a. The effective or yield rate of interest exceeded the coupon rate. b. The cash rate of interest exceeded the coupon rate. c. The effective or yield rate of interest was less than the coupon rate. d. The effective or yield rate of interest was equal to the coupon rate.
Java Co. issued 15-year bonds with a maturity value of $600 million. Which of the following statements is true if the bonds were issued at their par value? Select one: Select one: a. The effective or yield rate of interest exceeded the coupon rate. b. The cash rate of interest exceeded the coupon rate. c. The effective or yield rate of interest was less than the coupon rate. d. The effective or yield rate of interest was equal to the coupon rate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Java Co. issued 15-year bonds with a maturity value of $600 million. Which of the following statements is true if the bonds were issued at their par value?
Select one:
Select one:
a. The effective or yield rate of interest exceeded the coupon rate.
b. The cash rate of interest exceeded the coupon rate.
c. The effective or yield rate of interest was less than the coupon rate.
d. The effective or yield rate of interest was equal to the coupon rate.
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