A $500,000 bond issue sold for $490,000.Therefore,the bonds:

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When bonds sell for less than their face value, it is considered to be selling at a discount. The most common reason for bonds selling at a discount is when the market interest rate is higher than the stated rate on the bond. This makes the bond less attractive to buyers, as they can get a better return on their investment elsewhere. In this case, the bond issue sold for $490,000, which is less than the face value of $500,000, indicating that the bond sold at a discount due to the market interest rate being higher than the stated rate.

A $500,000 Bond Issue Sold for $490,000.Therefore,the Bonds