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Given the information below, which bond(s) will be issued at a premium? Bond 1 Bond 2 Bond 3 Bond 4 Stated Rate of Return 5
Given the information below, which bond(s) will be issued at a premium?
Bond 1 | Bond 2 | Bond 3 | Bond 4 | |||||
Stated Rate of Return | 5 | % | 10 | % | 7 | % | 10 | % |
Market Rate of Return | 7 | % | 8 | % | 7 | % | 9 | % |
Group of answer choices
Bond 3.
Bonds 2 and 4.
Bond 2.
Bond 1.
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