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Selling the bonds at a discount has the effect of causing the total cost of borrowing to be higher than the bond interest paid. causing

Selling the bonds at a discount has the effect of causing the total cost of borrowing to be higher than the bond interest paid. causing the total cost of borrowing to be lower than the bond interest paid. raising the effective interest rate above the state interest rate. increasing the amount of cash paid for interest each 6 months.

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