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Case Wines Company Issues $805,000 of 9%,10-Year Bonds on March

Question 102

Multiple Choice

Case Wines Company issues $805,000 of 9%,10-year bonds on March 31,2017.The bonds pay interest on March 31 and September 30.Which of the following statements is true?


A) If the market rate of interest is 10%,the bonds will issue at a premium.
B) If the market rate of interest is 10%,the bonds will issue at a discount.
C) If the market rate of interest is 10%,the bonds will issue at par.
D) If the market rate of interest is 10%,the bonds will issue above par.

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