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On July 1,2011,Ace Electronics Issued $10 Million Dollars of 8%,20-Year

Question 150

Multiple Choice

On July 1,2011,Ace Electronics issued $10 million dollars of 8%,20-year bonds at 102.The bonds pay interest semiannually on December 31 and June 30.The bonds sold at 102 because ________.


A) the market rate of interest was higher than 8%
B) the market rate of interest was exactly 8%
C) the market rate of interest was lower than 8%
D) The answer cannot be determined from the information given.

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