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On NOVEMBER 30,2011,Just in Thyme,Inc

Question 122

Multiple Choice

On NOVEMBER 30,2011,Just in Thyme,Inc.issued $100,000 of 20-year,9% bonds at 100.The bonds pay interest SEMIANNUALLY on May 31 and November 30.These bonds sold at 100,which is ________.


A) par
B) a premium,because the market rate of interest is higher than 9%
C) a premium,because the market rate of interest is lower than 9%
D) a discount,because the market rate of interest is higher than 9%

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