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If the market rate of interst is 10%, a $1,000, 12%, 10-year bond that pays interest semiannually would sell at: a. a pr...

If the market rate of interst is 10%, a $1,000, 12%, 10-year bond that pays interest semiannually would sell at:

a. a premium

b. a discount

c. face value

d. more information is needed

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Answer #1

a premium

Explanation: in bonds offer interest rate more than the market interest rate then generally bonds are issued at premium.

Option a. is correct answer.

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