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A company issues $10,000, 6%, 10-year bonds that pay interest annually. If the market rate is 5%, the bonds would sell at an amount

 

A company issues $10,000, 6%, 10-year bonds that pay interest annually. If the market rate is 5%, the bonds would sell at an amount a. less than face value. b. equal to face value. c. greater than face value. d. that cannot be determined.

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