QuestionAugust 13, 2025

Fill in the Blank Question For a bond issued at a d discount, nt, the stated interest rate will be square than its yield or return earned by bond investors.

Fill in the Blank Question For a bond issued at a d discount, nt, the stated interest rate will be square than its yield or return earned by bond investors.
Fill in the Blank Question
For a bond issued at a d discount, nt, the stated interest rate will be square  than its yield or return earned by bond investors.

Solution
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Answer

lower Explanation 1. Understand Bond Issuance at Discount A bond issued at a discount means it is sold for less than its face value. 2. Compare Stated Interest Rate and Yield The yield or return earned by investors is higher because they pay less upfront but receive the same interest payments as if they paid full price.

Explanation

1. Understand Bond Issuance at Discount<br /> A bond issued at a discount means it is sold for less than its face value.<br /><br />2. Compare Stated Interest Rate and Yield<br /> The yield or return earned by investors is higher because they pay less upfront but receive the same interest payments as if they paid full price.
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