Case Wines Company issues $800,000 of 7%,10-year bonds on March 31,2013.The bond pays interest on March 31 and September 30.Which of the following statements is true?
A) If the market rate of interest is 8%,the bonds will issue at a premium.
B) If the market rate of interest is 8%,the bonds will issue at a discount.
C) If the market rate of interest is 8%,the bonds will issue at par.
D) If the market rate of interest is 8%,the bonds will issue above par.
Correct Answer:
Verified
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