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What effect does selling bonds at a premium have? A. It raises the market interest rate above the contractual interest rate. B. It attracts investors
What effect does selling bonds at a premium have? A. It raises the market interest rate above the contractual interest rate. B. It attracts investors who are willing to accept a lower rate of interest than on similar bond C. It causes the total cost of borrowing to be higher than the bond interest paid. D. It causes the total cost of borrowing to be lower than the bond interest paid. E. None of the above
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