Bonds with a face value of $100,000 were sold at an effective interest rate of 9% to yield cash proceeds in excess of $100,000. It is apparent that the bonds had a:

Question

Quizplus · Accepted Answer

When bonds are sold for more than their face value, it indicates that the stated interest rate on the bonds is higher than the market interest rate, making them more attractive to investors.

Bonds with a Face Value of $100,000 Were Sold at an Effective