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Selling bonds at a premium has the effect of a. raising the effective inerest rate above the stated interest rate. b. attracting investors that are

Selling bonds at a premium has the effect of

a.

raising the effective inerest rate above the stated interest rate.

b.

attracting investors that are willing to pay a lower rate of interest than on similar bonds.

c.

causing the interest expense to be higher than the bond interest paid.

d.

causing the interest expense to be lower than the bond interest paid.

e.

none of the above

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