Question
GoGreen Plaza is considering an issuance of bonds with coupon rate of 8 percent and face value of $1,000. The bonds will make annual coupon
GoGreen Plaza is considering an issuance of bonds with coupon rate of 8 percent and face value of $1,000. The bonds will make annual coupon payments and mature in 20 years. The firm wants to sell the bonds a par. Pick the correct statement related to the bonds from below. Multiple Choice The bonds will initially sell for $1,000 each. The bonds will sell at a premium if the market rate is 8 percent. The bonds will become discount bonds if the market rate of interest declines. The final payment will be in the amount of $1,040. The bonds will pay 40 interest payments of $80 each.
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