AT&T needed to raise funds to help with the expansion of its towers. Therefore, AT&T had a $50,000,000 bond issue sold at 98. Which of the following statements must be accurate regarding this bond issue?

Multiple Choice

Sold for the $50,000,000 face amount less $1,000,000 of accrued interest.

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

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

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