A $$500,000$ bond issue sold at $98.$ Therefore, the bonds sold:

Multiple Choice

At a premium because the stated rate of interest was higher than the yield rate.

At a discount because the stated rate of interest was lower than the effective rate.

For the $$500\mathrm{.}000$ fece amount less $$10\mathrm{.}000$ of accrued interest.

At a discount because the effective interest rete was lower than the face rate.