Question: A $ 5 0 2 , 0 0 0 bond issue sold for $ 4 8 8 , 0 0 0 . Therefore, the bonds

A $502,000 bond issue sold for $488,000. Therefore, the bonds sold:
Multiple Choise
at a premium because the stated interest rate was higher than the market rate.
for the $502,000 face amount less $14,000 of accrued interest.
at a discount because the stated interest rate was higher than the market rate.
at a discount because the market interest rate was higher than the stated rate.
A $ 5 0 2 , 0 0 0 bond issue sold for $ 4 8 8 , 0

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