Question: Given the information below, which bond(s) will be issued at a discount? Bond 1 Bond 2 Bond 3 Bond 4 Stated rate of return 14%

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

Bond 1 Bond 2 Bond 3 Bond 4
Stated rate of return 14% 13% 15% 15%
Market rate of return 15% 13% 16% 14%

Bond 1

Bond 3

Bond 1 and 3

Bond 4

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