A bond with a face value of \$1,000 is issued at \$1,100. What does this indicate about the bond's stated interest rate compared to the market rate?

• A. The stated rate is equal to the market rate.
• B. The bond is secured by collateral.
• C. The stated rate is greater than the market rate.
• D. The stated rate is less than the market rate.

Answer: (C)