A $500,000 bond issue sold at 98. Therefore, the bonds:

a) Sold at a discount because the stated rate of interest was lower than the effective rate.

b) Sold for the $500,000 face amount less $10,000 of accrued interest.

c) Sold at a premium because the stated rate of interest was higher than the yield rate.

d) Sold at a discount because the effective interest rate was lower than the face rate.

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