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Cole Manufacturing Corporation Issued Bonds with a Maturity Amount of $200,000

Question 3

Multiple Choice

Cole Manufacturing Corporation issued bonds with a maturity amount of $200,000 and a maturity 10 years from date of issue.If the bonds were issued at a premium,this indicates that


A) The yield effective or market) rate of interest exceeded the nominal coupon) rate
B) The nominal rate of interest exceeded the yield rate
C) The yield and nominal rates coincided
D) No necessary relationship exists between the two rates

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