Given a contract interest rate of 8.5%,and a market interest rate of 7.75%,the bonds will be issued at:

Name: Given a contract interest rate of 8.5%,and a market interest rate of 7.75%,the bonds will be issued at:
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Question

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When the contract interest rate (the rate stated on the bond) is higher than the market interest rate, bonds are issued at a premium because they offer a more attractive return compared to the current market conditions.

Given a Contract Interest Rate of 8