Question: TB12suffered a significant decline in financial performance and decided to issue bonds to raise capital for operating purposes.The bonds were issued with a face value

TB12 suffered a significant decline in financial performance and decided to issue bonds to raise capital for operating purposes. The bonds were issued with a face value of $50 million on January 1, 2021 with a stated interest rate (coupon rate) of 10% when the effective rate (market rate) was 9%. Which of the following is true regarding the bond issuance?

The bonds were issued at a discount.
The bonds were issued at a premium.
The bonds were issued at par.
The bonds were issued at face value.
None of the answers are correct.

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