If a corporation plans to issue $4,000,000 of 5% bonds at a time when the market rate of interest for similar bonds is 6%, the bonds will sell at:

Name: If a corporation plans to issue $4,000,000 of 5% bonds at a time when the market rate of interest for similar bonds is 6%, the bonds will sell at:
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Since the market rate of interest is higher than the coupon rate of the bonds being offered, the bonds will sell at a discount (less than their face value) to make them more attractive to buyers.

If a Corporation Plans to Issue $4,000,000 of 5% Bonds