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Eaton Company issued $5 million of bonds with a 10% coupon rate of interest. When Eaton issued the bonds, the market rate of interest was

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Eaton Company issued $5 million of bonds with a 10% coupon rate of interest. When Eaton issued the bonds, the market rate of interest was 8%. Which of the following statements is correct? The bonds were issued at a discount. Annual interest expense will be less than the company's actual cash payments for interest. Annual interest expense will be $500,000. The book value of the bond will increase as the bond matures

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