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 7%

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

Bond 1Bond 2Bond 3Bond 4
Stated Rate of Return7%12%10%8%
Market Rate of Return8%10%10%9%

A). Bond 2.

B). Bond 1.

C). Bonds 2 and 4.

D). Bond 3.

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