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

Selling the bonds at a premium has the effect of 


  • raising the effective interest rate above the stated interest rate 
  • attracting investors that are willing to pay a lower rate of interest than on similar bonds 
  • causing the interest expense to be higher than the bond interest paid 
  • causing the interest expense to be lower than the bond interest paid d) a.

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