Assume that Neer Inc. sold bonds with a face value of $100,000 for $104,000. Was the market

Question:

Assume that Neer Inc. sold bonds with a of $100,000 for $104,000. Was the market interest rate equal to, less than, or greater than the bonds’ contractual interest rate? Explain.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...