The existence of a Bond Premium account in a firm's G/L implies that:

Multiple Choice

• It sold bonds publicly that offered an interest rate equal to the prevailing market rate of interest.

• None of these

• It sold bonds publicly that offered an interest rate higher than the prevailing market rate of interest.

• We cannot ascertain such a relationship simply from the existence of such an account

• It sold bonds publicly that offered an interest rate lower than the prevailing market rate of interest.