Question: A company issues 10 -year bonds with a face value of $200,000. If the bonds are issued at a discount, this indicates that: A. the

 A company issues 10 -year bonds with a face value of

A company issues 10 -year bonds with a face value of $200,000. If the bonds are issued at a discount, this indicates that: A. the contractual interest rate exceeds the market interest rate. B. the market interest rate exceeds the contractual interest rate. C. the contractual interest rate and the market interest rate are the same. D. no relationship exists between the two rates. the contractual interest rate exceeds the market interest rate. the market interest rate exceeds the contractual interest rate. the contractual interest rate and the market interest rate are the same. no relationship exists between the two rates

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