AB Company Issued a $100,000,10%,bond at $99.Therefore,the Bond

question 13

Multiple Choice

AB Company issued a $100,000,10%,bond at $99.Therefore,the bond:

• A) was sold at a premium because the stated interest rate was higher than the yield rate.
• B) sold at a discount because the stated interest rate was lower than the market interest rate.
• C) sold at a premium because the $1,000 accrued interest is added to the $100,000 face amount.
• D) was sold for $100,000 less $1,000 of accrued interest.