Exhibit 14-1
A $300,000, ten-year, 8% bond issue was sold to yield 9% interest payable annually. Actuarial information for 10 periods is as follows:
-Refer to Exhibit 14-1. These bonds sold at

Question

Exhibit 14-1
A $300,000, ten-year, 8% bond issue was sold to yield 9% interest payable annually. Actuarial information for 10 periods is as follows: 
-Refer to Exhibit 14-1. These bonds sold at

Quizplus · Accepted Answer

The bonds sold at a discount because their coupon rate is lower than the market interest rate, leading investors to pay less than the face value to achieve a competitive yield.

Exhibit 14-1 A $300,000, Ten-Year, 8% Bond Issue Was Sold to Yield