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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 h…

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 h…
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13 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?.

asked
User Carlos Garces
by
8.4k points

1 Answer

6 votes

Answer:

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

Step-by-step explanation:

answered
User Evgeny Karkan
by
8.6k points
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