Kiss Greetings Planned to Raise $500,000 by Issuing Bonds

Kiss Greetings planned to raise $500,000 by issuing bonds. The bond certificates were printed bearing a stated interest rate of 6%, which was equal to the yield rate of interest. However, before the bonds could be issued, economic conditions forced the yield rate up to 7%. If the life of the bonds is 10 years and interest is paid annually on December 31, how much will the company receive from the sale of the bonds?

A) Exactly $500,000 because the company would still pay interest at the stated rate.
B) Less than $500,000 because the 7% yield rate of interest was higher than the stated rate.
C) More than $500,000 because the 6% stated rate of interest was less than the yield rate.
D) The 6% bonds will not be sold at all. The company will be required to have the certificates reprinted bearing the new yield rate of 7%.