What the bonds were issued at a premium

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Question 1: Reich, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that ....

a. the effective yield or market rate of interest exceeded the stated (nominal) rate

b. no necessary relationship exists between the two rates

c. the nominal rate of interest exceeded the market rate.

d. the market and nominal rates coincided

Reference no: EM132519406

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