Question: A $ 5 0 9 , 0 0 0 bond issue sold for $ 4 8 1 , 0 0 0 . Therefore, the bonds

A $509,000 bond issue sold for $481,000. Therefore, the bonds sold:
Multiple Choice
for the $509,000 face amount less $28,000 of accrued interest.
at a discount because the stated interest rate was higher than the market rate.
at a premium 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.

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