Question: Given the information below, which bond(s) will be issued at a premium? Bond 1 Bond 2 Bond 3 Bond 4 Stated Rate of Return 5

Given the information below, which bond(s) will be issued at a premium?

Bond 1 Bond 2 Bond 3 Bond 4
Stated Rate of Return 5 % 10 % 7 % 10 %
Market Rate of Return 7 % 8 % 7 % 9 %

Group of answer choices

Bond 3.

Bonds 2 and 4.

Bond 2.

Bond 1.

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