What factor explains why bonds are issued at a discount


Problem: Bonds can be issued at face value, at a discount or at a premium. What factor explains why bonds are issued at a discount?

A. The issuing firm is anxious to sell them.

B. The yield rate is less than the coupon rate.

C. The yield rate is greater than the coupon rate.

D. The bonds are considered less risky than similar bonds on the market.

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Finance Basics: What factor explains why bonds are issued at a discount
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