Cole Manufacturing Corporation issued bonds with a maturity amount of $200,000 and a maturity 10 years from date of issue. If the bonds were issued at a premium, this indicates that

Question

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The issuance of bonds at a premium occurs when the stated rate of interest on the bonds is higher than the prevailing market interest rate (yield rate). This makes the bonds more attractive to investors, who are willing to pay more than the face value for these higher-interest bonds.

Cole Manufacturing Corporation Issued Bonds with a Maturity Amount of $200,000