A corporation issues $50 million of 7% bonds to yield interest at the rate of 9%.

(A) Was the amount of cash received from the sale of the bonds greater or less than $50 million?

(B) Identify the following amounts as they relate to the bond issue:

(i) face amount.

(ii) market or effective rate of interest.

(iii) contract rate of interest.

(iv) maturity amount.