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5) XYZ Enterprises issues $1,000,000 of bonds paying a stated interest rate of 7%. The bonds are due in 10 years, with interest payable annually

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5) XYZ Enterprises issues $1,000,000 of bonds paying a stated interest rate of 7%. The bonds are due in 10 years, with interest payable annually each year on Jan. 1t. When the bonds are issued, other bonds of similar risk and maturity are paying 11% (i.e. the discount rate or market interest rate is 11% ). Calculate the issuance (selling) price of this bond: Is the bond issued at a premium, discount, or face value (par)

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