Given the information below,which bond(s)will be issued at a premium?
$\begin{array}{|l|c|c|c|c|}
\hline & \text { Bond 1 } & \text { Bond 2 } & \text { Bond 3 } & \text { Bond 4 } \
\hline \text { Stated Rate of Return } & 5 \% & 10 \% & 7 \% & 10 \% \
\hline \text { Market Rate of Return } & 7 \% & 8 \% & 7 \% & 9 \% \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

Bonds 2 and 4 will be issued at a premium because their market rate of return is lower than their stated rate of return.

Given the Information Below,which Bond(s)will Be Issued at a Premium