Question: ( 1 0 2 ) K Communications Inc. issues $ 1 million of 1 0 - year, 4 % bonds when the market rate of

(102) K Communications Inc. issues $1 million of 10-year, 4% bonds when the market rate of finterest is 5%. Interest is paid semi-annually. Investors will:
a. not buy the bonds because the market rate of interest is higher than the contractual rate of interest.
b. buy the bonds for $1 million.
c. buy the bonds for more than $1 million.
a. buy the bonds for less than $1 million.
(102) K Communications Inc. issues $1 million of 10-year, 4% bonds

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