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Henry Company planned to raise $1,000,000 by issuing bonds. The bond certificates were printed bearing an interest rate of 6%, which was what they expected
Henry Company planned to raise $1,000,000 by issuing bonds. The bond certificates were printed bearing an interest rate of 6%, which was what they expected the market rate of interest would be when issued. However, before the bonds could be issued, economic conditions forced the market rate down to 5.9%. If the life of the bonds is 10 years and interest is paid annually on December 31, which of the following is true? O The stated rate of interest on the bond is 5.9%. O The bonds will sell at a discount. O The bonds will sell at par value. The bonds will sell at a premium
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