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Assume that on July 1 , 2 0 1 9 , the company issued a 1 billion 3 - year bond with annual coupon rate

Assume that on July 1,2019, the company issued a 1 billion 3-year bond with annual coupon rate of 4.8%, an annual effective rate of 5.0%, and interest to be paid semiannually. Was this bond issued a face value, at a premium over face value, or at a discount from face value? Explain briefly, and without any computations.

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