Cuso Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at

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Cuso Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at a premium, this indicates that:

(a) the contractual interest rate exceeds the market interest rate.

(b) the market interest rate exceeds the contractual interest rate.

(c) the contractual interest rate and the mar- ket interest rate are the same.

(d) no relationship exists between the two rates.

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471691952

3rd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Cuso Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at

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