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Shell Corporation has authorized an issue of 15%, 10-year bonds. At the issue date, the market rate of interest for this type of bond is
Shell Corporation has authorized an issue of 15%, 10-year bonds. At the issue date, the market rate of interest for this type of bond is 13.5%. Based on this, it might be expected that: The company will find it difficult to sell the bonds The bonds will be sold at a premium The bonds will be sold at a discount The bonds will be sold at face value The bond contract will be rewritten because it is inconsistent
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