A bond with a $$507,000$ face amount is issued$$for $$485,000.$ Therefore, the bonds:

Question $26$ options:

a$)$

Sold at a discount because the stated interest rate was higher than the market rate.

b$)$

Sold at a discount because the market interest rate was higher than the stated rate.

c$)$

Sold for the $$507,000$ face amount less $$22,000$ of accrued interest.

d$)$

Sold at a premium because the stated interest rate was higher than the market rate.