Exhibit 14-1 A $300,000, ten-year, 8% bond issue was sold to yield 9% interest payable annually. Actuarial information for 10 periods is as follows:
-Refer to Exhibit 14-1. These bonds sold at

Question

Exhibit 14-1 A $300,000, ten-year, 8% bond issue was sold to yield 9% interest payable annually. Actuarial information for 10 periods is as follows: 
-Refer to Exhibit 14-1. These bonds sold at

Quizplus · Accepted Answer

The bond issue was sold to yield 9% interest, which is higher than the bond's coupon rate of 8%. This indicates that the bond is selling at a discount.

Exhibit 14-1 a $300,000, Ten-Year, 8% Bond Issue Was Sold