Given the Information Below, Which Bond(s) Will Be Issued at a Discount

question 71

Multiple Choice

Given the information below, which bond(s) will be issued at a discount? $$\begin{array} { | l | c | c | c | c | } \hline & \text { Bond 1 } & \text { Bond 2 } & \text { Bond 3 } & \text { Bond 4 } \\\hline \text { Stated Rate of Return } & 10 \% & 8 \% & 12 \% & 12 \% \\\hline \text { Market Rate of Return } & 12 \% & 8 \% & 15 \% & 10 \% \\\hline\end{array}$$

• A) Bond 1
• B) Bond 3
• C) Bond 2 and 4
• D) Bonds 1 and 3

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