Question: A corporation issues $9,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the amount of cash received from the sale

A issues $9,000,000 of 9% bonds to yield interest at the rate of 7%.
(a) Was the amount of cash received from the sale of the bonds greater or less than $9,000,000?
(b) Identify the following terms related to the bond issue:
(1) Face amount,
(2) Market or effective rate of interest,
(3) Contract rate of interest, and
(4) amount.

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