# Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct?

Are you having trouble answering the question “Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct?”? If that’s the case, you don’t need to worry anymore. Azanswer has brought you the correct answer to your question.

## Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct?

A) Both bonds will sell for the same amount.

B) Bond X will sell for more than Bond Y.

C) Bond Y will sell for more than Bond X.

D) Both bonds will sell at a premium.

Answer: B

We hope you have got the correct answer to your question “Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of $100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct?”, which was part of Accounting MCQs & Answers. Thanks for choosing us.