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    Bonds- discount, face, or premium

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    What is the determining factor of whether a bond is sold at a discount, face, or premium?

    What types of industries have unearned revenue?

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    What is the determining factor of whether a bond is sold at a discount, face, or premium?

    There are several factors--such as the credit standing of the issuing corporation--that determine whether or not bonds sell for face value, above face value, or below face value. The overriding factor, however, is the interest rate the bond pays compared with the rate prevailing in the bond market. A bond sells for a premium when its contract rate (Coupon rate) is higher than the market rate. On the ...

    Solution Summary

    The solution discusses the factors that determine whether a bond is sold at a discount, face, or premium. It also discusses the types of industries that have unearned revenue.

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