Exercuse 10-2

2. Issued at a premium 8% Certification Senas 33 Exercise 10-2 Issue Price 2 Youngblood Inc. plans to issue $500,000 face value bonds with a stated interest rate of 8%. They will mature in ten years. Interest will be paid semiannually. At the date of issuance, assume that the market rate is (a) 8%, (b) 6%, and (c) 10%