A bond issue with a face amount of $500,000 bears interest at the rate of 7%.The current market rate of interest is 6%.These bonds will sell at a price that is:

Name: A bond issue with a face amount of $500,000 bears interest at the rate of 7%.The current market rate of interest is 6%.These bonds will sell at a price that is:
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When the bond's coupon rate (7%) is higher than the current market rate (6%), the bond will sell at a premium, meaning more than its face value of $500,000.

A Bond Issue with a Face Amount of $500,000 Bears